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NXP Semiconductors (NXPI) is a Top-Ranked Value Stock: Should You Buy?

Zacks Equity Research
·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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NXP Semiconductors (NXPI)

NXP Semiconductors N.V. provides high performance mixed signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise. These solutions are used in a wide range of applications, namely automotive, wireless infrastructure, lighting, industrial, mobile, consumer and computing.

NXPI sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Semiconductor - Analog and Mixed industry's P/E of 16.5X, shares of NXP Semiconductors are trading at a forward P/E of 11.6X. NXPI also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 11.3X, and a Price/Sales ratio of 3.6X.

Many value investors pay close attention to a company's earnings as well. For NXPI, 12 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.79 to $13.73 per share for 2022. Per share NXPI boasts an average earnings surprise of 4.2%.

NXPI should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
 
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