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Xilinx (XLNX) Gains But Lags Market: What You Should Know

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Xilinx (XLNX - Free Report) closed at $96.38 in the latest trading session, marking a +0.16% move from the prior day. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.91%.

Coming into today, shares of the computer chipmaker had gained 3.31% in the past month. In that same time, the Computer and Technology sector gained 2.68%, while the S&P 500 gained 2.64%.

Wall Street will be looking for positivity from XLNX as it approaches its next earnings report date. 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 $3.34 per share and revenue of $3.22 billion. These totals would mark changes of -4.02% and +5.33%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 a Zacks Rank #4 (Sell).

Investors should also note XLNX's current valuation metrics, including its Forward P/E ratio of 28.77. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 28.77.

Also, we should mention that XLNX has a PEG ratio of 2.4. 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 2.4 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 244, which puts it in the bottom 5% 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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