NXP Semiconductors (NXPI) Declines More Than Market: Some Information for Investors
The most recent trading session ended with NXP Semiconductors (NXPI) standing at $205.83, reflecting a -0.22% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.06%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.31%.
The chipmaker's stock has climbed by 12.85% in the past month, exceeding the Computer and Technology sector's gain of 5.53% and the S&P 500's gain of 5.1%.
Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. The company is forecasted to report an EPS of $3.64, showcasing a 2.41% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.4 billion, indicating a 2.52% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.95 per share and a revenue of $13.25 billion, indicating changes of -11.26% and +0.34%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for NXP Semiconductors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has moved 1.16% higher. NXP Semiconductors is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, NXP Semiconductors is currently being traded at a Forward P/E ratio of 14.78. This valuation marks a discount compared to its industry's average Forward P/E of 21.51.
Investors should also note that NXPI has a PEG ratio of 0.89 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 3.1 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 24% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
