NXP Semiconductors (NXPI) Outpaces Stock Market Gains: What You Should Know

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NXP Semiconductors (NXPI) closed at $229.02 in the latest trading session, marking a +0.65% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the chipmaker had gained 3.43% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 gained 0.12%.

Investors will be hoping for strength from NXP Semiconductors as it approaches its next earnings release, which is expected to be January 31, 2022. In that report, analysts expect NXP Semiconductors to post earnings of $3.01 per share. This would mark year-over-year growth of 12.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3 billion, up 19.73% from the year-ago period.

Any recent changes to analyst estimates for NXP Semiconductors should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% higher. NXP Semiconductors is currently a Zacks Rank #2 (Buy).

Investors should also note NXP Semiconductors’s current valuation metrics, including its Forward P/E ratio of 19. This valuation marks a discount compared to its industry’s average Forward P/E of 21.98.

We can also see that NXPI currently has a PEG ratio of 0.86. 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 1.47 at yesterday’s closing price.

The Semiconductor – Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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