NXP Semiconductors (NXPI) ended the recent trading session at $329.24, demonstrating a -1.03% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.07%.
The chipmaker's shares have seen an increase of 44.39% over the last month, surpassing the Computer and Technology sector's gain of 9.97% and the S&P 500's gain of 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.52, showcasing a 29.41% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.47 billion, showing a 18.48% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.77 per share and revenue of $14.03 billion. These totals would mark changes of +25.06% and +14.32%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for NXP Semiconductors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 6.53% rise in the Zacks Consensus EPS estimate. Currently, NXP Semiconductors is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, NXP Semiconductors is holding a Forward P/E ratio of 22.53. This expresses a discount compared to the average Forward P/E of 69.14 of its industry.
One should further note that NXPI currently holds a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 1.16.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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).