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Xilinx (XLNX) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Xilinx (XLNX) closed at $99.61, marking a +0.67% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the computer chipmaker had gained 2.67% over the past month, lagging the Computer and Technology sector's gain of 7.03% and the S&P 500's gain of 3.88% in that time.

Wall Street will be looking for positivity from XLNX as it approaches its next earnings report date. This is expected to be January 28, 2020. In that report, analysts expect XLNX to post earnings of $0.64 per share. This would mark a year-over-year decline of 30.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $725.70 million, down 9.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $3.22 billion. These totals would mark changes of -4.02% and +5.33%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for XLNX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. XLNX is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, XLNX is currently trading at a Forward P/E ratio of 29.59. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 29.59.

It is also worth noting that XLNX currently has a PEG ratio of 2.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductors - Programmable Logic stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.

The Semiconductors - Programmable Logic industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow XLNX in the coming trading sessions, be sure to utilize Zacks.com.


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