Chipmakers have led the artificial intelligence revolution. Meanwhile, top-ranked chipmaker NXP Semiconductors makes chips that go into all the things that will be enhanced by AI including autos, devices connected to the Internet of Things and smart building technology. On Tuesday the Relative Strength (RS) Rating for NXP stock rose from 78 to 81, passing a milestone along the way.
The 81 RS Rating puts NXP stock in the top 19% for price performance over the past 52 weeks. It's a bullish development because the best-performing stocks often have an RS Rating north of 80 in the early stages of their moves.
See How IBD Helps You Make More Money In Stocks
NXP Stock Popular Among Institutional Investors
Among its other ratings NXP stock has an 87 Composite Rating, putting it in the top 13% of stocks for an array of technical and fundamental factors. Its near-best 98 Earnings Per Share Rating reflects earnings growth over the past three years, with emphasis on the two most recent quarters.
The Netherlands-based company boasts an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale, showing it has outstanding fundamentals. And its B- Accumulation/Distribution Rating indicates that institutional investors like ETFs and insurance company funds are briskly buying its shares.
Watchlist candidate NXP stock is building a consolidation with a 238.27 entry. See if the stock can break out in heavy trade. On Tuesday NXP was down 1% for the day to 215.17, and up about 29% from an Oct. 30 167.21 low. It dipped below its 21-day line Tuesday but trades above both its 50-day and 200-day lines.
Profit Growth Excels, Sales Need A Lift
The company posted 33% earnings growth last quarter, to $3.70 per share. The prior three quarters it recorded EPS growth of 23%, 29% and 36%. Sales last quarter were unchanged from the same quarter a year ago at $3.43 billion. It was the third quarter in a row of flat sales. The company is expected to report its latest earnings and sales numbers on or around Feb. 5. Look for sales to grow.
NXP stock earns the No. 1 rank among its peers in the 32-stock Electronics-Semiconductor Manufacturing industry group, according to IBD Stock Checkup. Taiwan Semiconductor is No. 2 and Amkor Technology is No. 3
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
