NXP Semiconductors (NXPI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest close session, NXP Semiconductors (NXPI) was down 1.74% at $223.87. This move lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.32%.

The stock of chipmaker has fallen by 2.4% in the past month, lagging the Computer and Technology sector's gain of 0.12% and the S&P 500's loss of 0.36%.

Market participants will be closely following the financial results of NXP Semiconductors in its upcoming release. It is anticipated that the company will report an EPS of $4.13, marking a 32.8% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.76 billion, indicating a 18.52% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.15 per share and revenue of $14.23 billion, indicating changes of +28.28% and +15.98%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for NXP Semiconductors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NXP Semiconductors is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note NXP Semiconductors's current valuation metrics, including its Forward P/E ratio of 15.03. For comparison, its industry has an average Forward P/E of 35.99, which means NXP Semiconductors is trading at a discount to the group.

One should further note that NXPI currently holds a PEG ratio of 0.7. 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. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 0.7.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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