In the latest close session, NXP Semiconductors (NXPI) was down 1.74% at $223.87. This move lagged the S&P 500’s daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
The stock of chipmaker has fallen by 2.4% in the past month, lagging the Computer and Technology sector’s gain of 0.12% and the S&P 500’s loss of 0.36%.
Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. It is anticipated that the company will report an EPS of $4.13, marking a 32.8% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.76 billion, indicating a 18.52% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.15 per share and revenue of $14.23 billion, indicating changes of +28.28% and +15.98%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note NXP Semiconductors’s current valuation metrics, including its Forward P/E ratio of 15.03. For comparison, its industry has an average Forward P/E of 35.99, which means NXP Semiconductors is trading at a discount to the group.
One should further note that NXPI currently holds a PEG ratio of 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Semiconductor – Analog and Mixed industry was having an average PEG ratio of 0.7.