NXP Semiconductors (NXPI) ended the recent trading session at $295.96, demonstrating a -8.15% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 2.65%. Meanwhile, the Dow lost 1.35%, and the Nasdaq, a tech-heavy index, lost 4.18%.
Shares of the chipmaker have appreciated by 11.03% over the course of the past month, outperforming the Computer and Technology sector's gain of 10.37%, and the S&P 500's gain of 5.47%.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. In that report, analysts expect NXP Semiconductors to post earnings of $3.52 per share. This would mark year-over-year growth of 29.41%. Alongside, our most recent consensus estimate is anticipating revenue of $3.47 billion, indicating a 18.48% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.77 per share and a revenue of $14.03 billion, signifying shifts of +25.06% and +14.32%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, NXP Semiconductors boasts a Zacks Rank of #2 (Buy).
In the context of valuation, NXP Semiconductors is at present trading with a Forward P/E ratio of 21.82. For comparison, its industry has an average Forward P/E of 68.7, which means NXP Semiconductors is trading at a discount to the group.
We can additionally observe that NXPI currently boasts a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.19.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 7, positioning it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).