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NXP Semiconductors (NXPI) Outperforms Broader Market: What You Need to Know

NXP Semiconductors (NXPI) closed the latest trading day at $276.85, indicating a +1.82% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.35%.

The the stock of chipmaker has risen by 3.88% in the past month, lagging the Computer and Technology sector's gain of 6.38% and overreaching the S&P 500's gain of 3.25%.

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 July 22, 2024. In that report, analysts expect NXP Semiconductors to post earnings of $3.20 per share. This would mark a year-over-year decline of 6.71%. Our most recent consensus estimate is calling for quarterly revenue of $3.13 billion, down 5.25% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14 per share and a revenue of $13.13 billion, signifying shifts of -0.07% and -1.1%, respectively, from the last year.

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Any recent changes to analyst estimates for NXP Semiconductors should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.25% upward. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, NXP Semiconductors is currently being traded at a Forward P/E ratio of 19.43. This expresses a discount compared to the average Forward P/E of 37.77 of its industry.

Investors should also note that NXPI has a PEG ratio of 2.26 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 3.13.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 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.

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

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