The most recent trading session ended with NXP Semiconductors (NXPI) standing at $209.72, reflecting a -1.35% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
Coming into today, shares of the chipmaker had lost 2.46% in the past month. In that same time, the Computer and Technology sector lost 0.17%, while the S&P 500 lost 2.8%.
Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. The company is expected to report EPS of $3.14, down 15.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.1 billion, down 9.43% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NXP Semiconductors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. NXP Semiconductors is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note NXP Semiconductors's current valuation metrics, including its Forward P/E ratio of 17. This represents a discount compared to its industry's average Forward P/E of 37.04.
It's also important to note that NXPI currently trades at a PEG ratio of 2.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.61.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 196, finds itself in the bottom 22% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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