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NXP Semiconductors (NXPI) Dips More Than Broader Markets: What You Should Know

NXP Semiconductors (NXPI) closed the most recent trading day at $192.41, moving -1.91% from the previous trading session.

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This story originally appeared on Zacks

In the latest trading session, NXP Semiconductors (NXPI) closed at $192.41, marking a -1.91% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%.

- Zacks

Prior to today's trading, shares of the chipmaker had lost 4.87% over the past month. This has lagged the Computer and Technology sector's loss of 1.72% and the S&P 500's gain of 3.08% in that time.

NXPI will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2021. The company is expected to report EPS of $2.74, up 61.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, up 25.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.31 per share and revenue of $10.91 billion, which would represent changes of +31.34% and +26.65%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NXPI. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NXPI currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, NXPI is holding a Forward P/E ratio of 19.03. Its industry sports an average Forward P/E of 25.24, so we one might conclude that NXPI is trading at a discount comparatively.

Also, we should mention that NXPI has a PEG ratio of 1.9. 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NXPI in the coming trading sessions, be sure to utilize Zacks.com.



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