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

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Xilinx (XLNX - Free Report) closed the most recent trading day at $105.94, moving +0.61% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the computer chipmaker had lost 4.13% in the past month. In that same time, the Computer and Technology sector gained 5.65%, while the S&P 500 gained 4.92%.

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, our latest consensus estimate is calling for revenue of $826.47 million, up 10.75% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.79 per share and revenue of $3.43 billion. These totals would mark changes of +8.91% and +12.22%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for XLNX. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. XLNX is currently a Zacks Rank #3 (Hold).

Investors should also note XLNX's current valuation metrics, including its Forward P/E ratio of 27.78. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 27.78.

We can also see that XLNX currently has a PEG ratio of 2.32. 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 2.32 at yesterday's closing price.

The Semiconductors - Programmable Logic industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% 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.

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