NXP Semiconductors (NXPI) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, NXP Semiconductors (NXPI) closed at $215.17, marking a -1.06% move from the previous day. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Prior to today's trading, shares of the chipmaker had lost 5.32% over the past month. This has lagged the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36% in that time.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2024. The company is predicted to post an EPS of $3.64, indicating a 2.41% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.4 billion, reflecting a 2.52% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.62% lower. NXP Semiconductors currently has a Zacks Rank of #4 (Sell).
Investors should also note NXP Semiconductors's current valuation metrics, including its Forward P/E ratio of 15.13. This valuation marks a discount compared to its industry's average Forward P/E of 28.11.
Meanwhile, NXPI's PEG ratio is currently 0.91. 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 was holding an average PEG ratio of 2.89 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 222, finds itself in the bottom 12% echelons 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.
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
