Sell: NXP Semiconductors (NXPI)
From Blue Chip Growth
Updated from Wall Street’s Best Investments 757, May 21, 2014
Chipmaker NXP Semiconductors (NXPI) sold off sharply following its third-quarter report at the end of October. In addition to missing analysts’ sales projections, the company noted that it will be fighting an uphill battle in the fourth quarter. Thanks to slowing global growth and higher inventories of unsold chips, the company expects sales to drop in the low to upper-teens over Q4 2014. This cautious guidance came as a shock on Wall Street, so the stock fell on the news. At the time, I urged everyone to hold their NXPI shares, and I’m glad I did; the stock has rebounded over 9% since October 30. However, since that earnings report, analysts have slashed their earnings estimates for the next several quarters. So, I’d like to take our gains off the table and get out while the going is still pretty good. Sell NXPI.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, December 2015