NXP Semiconductors (NXPI) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw NXP Semiconductors (NXPI) ending at $209.11, denoting a -1.13% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
Heading into today, shares of the chipmaker had lost 9.11% over the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52% 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. It is anticipated that the company will report an EPS of $3.64, marking a 2.41% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.4 billion, up 2.52% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% decrease. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NXP Semiconductors currently has a Forward P/E ratio of 14.46. Its industry sports an average Forward P/E of 27.07, so one might conclude that NXP Semiconductors is trading at a discount comparatively.
Also, we should mention that NXPI has a PEG ratio of 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 3.5 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 221, placing it within the bottom 13% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
