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

In the latest trading session, NXP Semiconductors (NXPI) closed at $199.89, marking a -1.04% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%.

Heading into today, shares of the chipmaker had lost 0.38% over the past month, lagging the Computer and Technology sector's gain of 9.72% and the S&P 500's gain of 5.07% in that time.

Wall Street will be looking for positivity from NXPI as it approaches its next earnings report date. This is expected to be April 26, 2021. In that report, analysts expect NXPI to post earnings of $2.21 per share. This would mark year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.56 billion, up 26.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.33 per share and revenue of $10.45 billion. These totals would mark changes of +18.85% and +21.38%, respectively, from last year.

Any recent changes to analyst estimates for NXPI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. NXPI is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that NXPI has a Forward P/E ratio of 21.65 right now. For comparison, its industry has an average Forward P/E of 30.1, which means NXPI is trading at a discount to the group.

Also, we should mention that NXPI has a PEG ratio of 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NXPI's industry had an average PEG ratio of 1.38 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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