Excited About Apple Pay? Skip Apple And Buy NXP Semiconductors Instead
- NXP Semiconductors provides the technology rumored to power Apple's new Pay system.
- Despite trading at only 14x forward earnings, NXP is expected to grow its earnings at more than 20% per year over the coming five years.
- However, investors need to recognize that this is a highly levered company in a cyclical industry and the stock's high beta reflects this elevated level of risk.
- While it is not suitable for all investors, those looking to capitalize on the future growth of mobile payments would be well served to consider buying NXP shares.