Stock To Watch: Xilinx (XLNX) In Perilous Reversal
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Xilinx as such a stock due to the following factors:
- XLNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $173.9 million.
- XLNX has traded 565,697 shares today.
- XLNX is down 3.1% today.
- XLNX was up 5.9% yesterday.
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More details on XLNX:
Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. The stock currently has a dividend yield of 3.1%. XLNX has a PE ratio of 16.8. Currently there are 7 analysts that rate Xilinx a buy, 1 analyst rates it a sell, and 10 rate it a hold.
The average volume for Xilinx has been 3.7 million shares per day over the past 30 days. Xilinx has a market cap of $10.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.60 and a short float of 4.3% with 2.74 days to cover. Shares are down 2.2% year-to-date as of the close of trading on Friday.
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Analysis:
rates Xilinx as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.40, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, XILINX INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for XILINX INC is currently very high, coming in at 72.04%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.38% is above that of the industry average.
- Net operating cash flow has increased to $290.74 million or 34.35% when compared to the same quarter last year. In addition, XILINX INC has also vastly surpassed the industry average cash flow growth rate of -16.21%.
- You can view the full Xilinx Ratings Report.
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