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NXP Semiconductors (NXPI) closed at $205.80 in the latest trading session, marking a -1.46% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 1.14%, and the technology-dominated Nasdaq saw a decrease of 0.18%.
Shares of the chipmaker have depreciated by 0.58% over the course of the past month, outperforming the Computer and Technology sector's loss of 11.69% and the S&P 500's loss of 7.29%.
The upcoming earnings release of NXP Semiconductors will be of great interest to investors. The company is forecasted to report an EPS of $2.59, showcasing a 20.06% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.83 billion, down 9.58% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $11.76 per share and a revenue of $11.93 billion, demonstrating changes of -10.16% and -5.44%, respectively, from the preceding year.
Any recent changes to analyst estimates for NXP Semiconductors should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 has shifted 0.68% downward. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, NXP Semiconductors is presently trading at a Forward P/E ratio of 17.76. Its industry sports an average Forward P/E of 28.54, so one might conclude that NXP Semiconductors is trading at a discount comparatively.
Meanwhile, NXPI's PEG ratio is currently 2.24. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.97 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 199, finds itself in the bottom 21% echelons of all 250+ industries.