In the latest trading session, NXP Semiconductors (NXPI) closed at $196.79, marking a +1.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the chipmaker had gained 0.09% in the past month. In that same time, the Computer and Technology sector lost 1.69%, while the S&P 500 lost 1.43%.
NXP Semiconductors will be looking to display strength as it nears its next earnings release. In that report, analysts expect NXP Semiconductors to post earnings of $3.58 per share. This would mark a year-over-year decline of 6.04%. Meanwhile, our latest consensus estimate is calling for revenue of $3.39 billion, down 1.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.79 per share and revenue of $13.22 billion. These totals would mark changes of -12.28% and +0.12%, respectively, from last year.
Any recent changes to analyst estimates for NXP Semiconductors should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. NXP Semiconductors is currently a Zacks Rank #3 (Hold).
In terms of valuation, NXP Semiconductors is currently trading at a Forward P/E ratio of 14.06. Its industry sports an average Forward P/E of 17.55, so we one might conclude that NXP Semiconductors is trading at a discount comparatively.
We can also see that NXPI currently has a PEG ratio of 0.85. 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 industry currently had an average PEG ratio of 2.07 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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