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In the latest market close, NXP Semiconductors (NXPI) reached $214.09, with a +1.83% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.98%.
Coming into today, shares of the chipmaker had lost 7.13% in the past month. In that same time, the Computer and Technology sector gained 3.28%, while the S&P 500 gained 0.34%.
The investment community will be closely monitoring the performance of NXP Semiconductors in its forthcoming earnings report. On that day, NXP Semiconductors is projected to report earnings of $3.14 per share, which would represent a year-over-year decline of 15.36%. Simultaneously, our latest consensus estimate expects the revenue to be $3.1 billion, showing a 9.43% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.04 per share and revenue of $12.6 billion, indicating changes of -6.92% and -5.08%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NXP Semiconductors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.33% lower. At present, NXP Semiconductors boasts a Zacks Rank of #4 (Sell).
With respect to valuation, NXP Semiconductors is currently being traded at a Forward P/E ratio of 16.13. This denotes a discount relative to the industry's average Forward P/E of 34.89.
Also, we should mention that NXPI has a PEG ratio of 2.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.52.