NXP Semiconductors (NXPI) ended the recent trading session at $219.28, demonstrating a -1.97% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.3%. On the other hand, the Dow registered a loss of 0.48%, and the technology-centric Nasdaq increased by 0.03%.
Heading into today, shares of the chipmaker had gained 1.65% over the past month, lagging the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 2.09%.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.1, indicating a 10.14% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.15 billion, indicating a 2.96% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.7 per share and a revenue of $12.12 billion, signifying shifts of -10.62% and -3.92%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for NXP Semiconductors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. NXP Semiconductors presently features a Zacks Rank of #3 (Hold).
In the context of valuation, NXP Semiconductors is at present trading with a Forward P/E ratio of 19.11. This denotes a discount relative to the industry average Forward P/E of 37.55.
Also, we should mention that NXPI has a PEG ratio of 2.2. 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. As of the close of trade yesterday, the Semiconductor – Analog and Mixed industry held an average PEG ratio of 2.17.
