Xilinx (XLNX) closed at $94.91 in the latest trading session, marking a +0.3% move from the prior day. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.4%.
Heading into today, shares of the computer chipmaker had lost 9.81% over the past month, lagging the Computer and Technology sector's gain of 0.51% and the S&P 500's loss of 0.14% 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 October 23, 2019. In that report, analysts expect XLNX to post earnings of $0.92 per share. This would mark year-over-year growth of 5.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $826.98 million, up 10.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.74 per share and revenue of $3.40 billion, which would represent changes of +7.47% and +11.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for XLNX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.46% lower within the past month. XLNX currently has a Zacks Rank of #4 (Sell).
Investors should also note XLNX's current valuation metrics, including its Forward P/E ratio of 25.33. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 25.33.
It is also worth noting that XLNX currently has a PEG ratio of 2.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductors - Programmable Logic industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Semiconductors - Programmable Logic industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 250, which puts it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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