Technology

Xilinx (XLNX) Dips More Than Broader Markets: What You Should Know

Xilinx (XLNX) closed the most recent trading day at $125.14, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.46%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, lost 0.63%.

Coming into today, shares of the computer chipmaker had gained 3.14% in the past month. In that same time, the Computer and Technology sector gained 2.74%, while the S&P 500 gained 1.08%.

Investors will be hoping for strength from XLNX as it approaches its next earnings release. In that report, analysts expect XLNX to post earnings of $0.94 per share. This would mark year-over-year growth of 46.88%. Meanwhile, our latest consensus estimate is calling for revenue of $824.88 million, up 22.59% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $3.05 billion, which would represent changes of +23.32% and +19.96%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for XLNX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. XLNX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, XLNX is holding a Forward P/E ratio of 36.25. This represents a no noticeable deviation compared to its industry's average Forward P/E of 36.25.

It is also worth noting that XLNX currently has a PEG ratio of 3.02. 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 was holding an average PEG ratio of 3.02 at yesterday's closing price.

The Semiconductors - Programmable Logic industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.


Click to get this free report

Xilinx, Inc. (XLNX): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.