Xilinx (XLNX) Dips More Than Broader Markets: What You Should Know
Xilinx (XLNX) closed at $88.65 in the latest trading session, marking a -1.79% move from the prior day. This move lagged the S&P 500's daily loss of 0.66%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the computer chipmaker had lost 6.59% over the past month. This has lagged the Computer and Technology sector's gain of 1.57% and the S&P 500's gain of 1.77% in that time.
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 $0.64 per share. This would mark a year-over-year decline of 30.43%. Our most recent consensus estimate is calling for quarterly revenue 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 $3.35 per share and revenue of $3.22 billion. These totals would mark changes of -3.74% and +5.39%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for XLNX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. XLNX is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, XLNX is currently trading at a Forward P/E ratio of 26.98. Its industry sports an average Forward P/E of 26.98, so we one might conclude that XLNX is trading at a no noticeable deviation comparatively.
Also, we should mention that XLNX has a PEG ratio of 2.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. XLNX's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Semiconductors - Programmable Logic industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 4% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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