Xilinx (NASDAQ:XLNX) closed at $127.06 in the latest trading session, marking a +1.42% move from the prior day. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.12%.
Coming into today, shares of the computer chipmaker had gained 5% in the past month. In that same time, the Computer and Technology sector gained 4.57%, while the S&P 500 gained 2.24%.
XLNX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.94, up 46.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $824.88 million, up 22.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $3.05 billion, which would represent changes of +23.32% and +19.96%, respectively, from the prior year.
Any recent changes to analyst estimates for XLNX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Within the past 30 days, our consensus EPS projection remained stagnant. XLNX is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note XLNX's current valuation metrics, including its Forward P/E ratio of 35.88. For comparison, its industry has an average Forward P/E of 35.88, which means XLNX is trading at a no noticeable deviation to the group.
Meanwhile, XLNX's PEG ratio is currently 2.99. 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 industry currently had an average PEG ratio of 2.99 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 1, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Xilinx, Inc. (XLNX): Free Stock Analysis Report
Original post
Zacks Investment Research