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

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Xilinx closed the most recent trading day at $96.12, moving -1.97% from the previous trading session. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 1.47%.

Coming into today, shares of the computer chipmaker had lost 3.67% in the past month. In that same time, the Computer and Technology sector gained 5.21%, while the S&P 500 gained 5.2%.

Investors will be hoping for strength from XLNX as it approaches its next earnings release. The company is expected to report EPS of $0.93, up 6.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $826.47 million, up 10.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $3.43 billion, which would represent changes of +8.91% and +12.22%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. XLNX is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that XLNX has a Forward P/E ratio of 25.87 right now. For comparison, its industry has an average Forward P/E of 25.87, which means XLNX is trading at a no noticeable deviation to the group.

It is also worth noting that XLNX currently has a PEG ratio of 2.16. 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. XLNX's industry had an average PEG ratio of 2.16 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 247, which puts it in the bottom 4% 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.

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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