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

Zacks Equity Research
·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and 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 14.8X, 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 11.6X, and a Price/Sales ratio of 3.5X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. 11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.36 to $14.07 per share. NXPI has an average earnings surprise of 13.4%.

Investors should take the time to consider NXPI for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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Zacks Investment Research