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

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Xilinx (XLNX - Free Report) closed at $104.92 in the latest trading session, marking a +0.61% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Coming into today, shares of the computer chipmaker had lost 0.78% in the past month. In that same time, the Computer and Technology sector gained 4.15%, while the S&P 500 gained 4.17%.

XLNX will be looking to display strength as it nears 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.

XLNX's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $3.43 billion. These results would represent year-over-year changes of +8.91% and +12.22%, respectively.

It is also important to note the recent changes to analyst estimates for XLNX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. XLNX is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note XLNX's current valuation metrics, including its Forward P/E ratio of 27.51. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 27.51.

Meanwhile, XLNX's PEG ratio is currently 2.29. 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 2.29 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 104, 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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