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

Zacks Equity Research

Xilinx (XLNX) closed at $116.39 in the latest trading session, marking a -1.03% move from the prior day. This move lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.75%.

Heading into today, shares of the computer chipmaker had gained 10.01% over the past month, outpacing the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% 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 July 24, 2019. In that report, analysts expect XLNX to post earnings of $0.94 per share. This would mark year-over-year growth of 27.03%. Our most recent consensus estimate is calling for quarterly revenue of $850.54 million, up 24.28% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.91 per share and revenue of $3.50 billion, which would represent changes of +12.36% and +14.54%, respectively, from the prior year.

Any recent changes to analyst estimates for XLNX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.39% lower. XLNX is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that XLNX has a Forward P/E ratio of 30.11 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 30.11.

Investors should also note that XLNX has a PEG ratio of 2.51 right now. 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. XLNX's industry had an average PEG ratio of 2.51 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 103, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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