NXP Semiconductors (NXPI) Dips More Than Broader Markets: What You Should Know

NXP Semiconductors (NXPI) closed the most recent trading day at $148.03, moving -1.33% from the previous trading session. This change lagged the S&P 500's daily loss of 0.88%. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the chipmaker had lost 18.72% over the past month, lagging the Computer and Technology sector's loss of 7.53% and the S&P 500's loss of 8.06% in that time.

NXP Semiconductors will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2022. In that report, analysts expect NXP Semiconductors to post earnings of $3.39 per share. This would mark year-over-year growth of 42.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.27 billion, up 26.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.73 per share and revenue of $13.15 billion, which would represent changes of +35.27% and +18.85%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NXP Semiconductors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NXP Semiconductors is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that NXP Semiconductors has a Forward P/E ratio of 10.93 right now. This represents a discount compared to its industry's average Forward P/E of 15.99.

Investors should also note that NXPI has a PEG ratio of 0.5 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 was holding an average PEG ratio of 0.84 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow NXPI in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.