NXP Semiconductors (NXPI) Stock Sinks As Market Gains: Here's Why
NXP Semiconductors (NXPI) closed the most recent trading day at $221.69, moving -1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.
Coming into today, shares of the chipmaker had lost 3.46% in the past month. In that same time, the Computer and Technology sector gained 4.29%, while the S&P 500 gained 2.4%.
Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. The company plans to announce its earnings on February 5, 2024. In that report, analysts expect NXP Semiconductors to post earnings of $3.64 per share. This would mark a year-over-year decline of 2.41%. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 2.52% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NXP Semiconductors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% decrease. NXP Semiconductors is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, NXP Semiconductors is presently trading at a Forward P/E ratio of 15.31. This valuation marks a discount compared to its industry's average Forward P/E of 29.53.
It's also important to note that NXPI currently trades at a PEG ratio of 0.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 3.83 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 20% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
