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Xperi (XPER) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Xperi (XPER) closed at $20.98, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.7%.

Coming into today, shares of the provider of chip technology for small electronic devices had lost 1.4% in the past month. In that same time, the Business Services sector lost 0.25%, while the S&P 500 gained 2.04%.

XPER will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. On that day, XPER is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 19.05%. Our most recent consensus estimate is calling for quarterly revenue of $90.40 million, down 10.13% from the year-ago period.

XPER's full-year Zacks Consensus Estimates are calling for earnings of $2.74 per share and revenue of $402.10 million. These results would represent year-over-year changes of -12.18% and -1.59%, respectively.

Investors might also notice recent changes to analyst estimates for XPER. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. XPER currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, XPER is holding a Forward P/E ratio of 7.58. Its industry sports an average Forward P/E of 21.75, so we one might conclude that XPER is trading at a discount comparatively.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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