NXP Semiconductors (NXPI) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Zacks
04-23

NXP Semiconductors (NXPI) closed the most recent trading day at $174.66, moving +1.84% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Elsewhere, the Dow saw an upswing of 2.66%, while the tech-heavy Nasdaq appreciated by 2.71%.

The chipmaker's stock has dropped by 18.77% in the past month, falling short of the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86%.

The investment community will be closely monitoring the performance of NXP Semiconductors in its forthcoming earnings report. The company is scheduled to release its earnings on April 28, 2025. The company is predicted to post an EPS of $2.59, indicating a 20.06% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.83 billion, down 9.58% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.64 per share and a revenue of $11.93 billion, representing changes of -11.08% and -5.44%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NXP Semiconductors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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, there's been no change in the Zacks Consensus EPS estimate. NXP Semiconductors is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, NXP Semiconductors is holding a Forward P/E ratio of 14.74. This valuation marks a discount compared to its industry's average Forward P/E of 24.6.

We can also see that NXPI currently has a PEG ratio of 1.86. 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. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 1.68.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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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This article originally published on Zacks Investment Research (zacks.com).

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