Xilinx (XLNX) is one of our top favorite 5G stocks. The 5G stock segment may not have gone wild yet, but we expect mania to enter this segment in the next quarters. As per InvestingHaven’s mission we aim to hit the one or two opportunities which present themselves and which deliver mega returns. This is the basis of our MOMENTUM INVESTING method. We believe 5G stocks in somewhere in the queue though may not be the first next in the row. Xilinx arrived at a great entry point but stock markets need to stop falling here. Investors should give XLNX a bit of time to stabilize here, if not it will be the U.S. Fed’s interest rate rise from earlier this week that will create more turmoil in markets (XLNX will not escape this and will continue to decline).
Why are we so excited about this opportunity? Because earnings from the first quarter look really solid. It is a set up for long term success.
Yes, there was less revenue because of the Huawei governmental ban, so one might argue this is not a great evolution. That’s true. But, again we aim to hit this sector once it breaks out strongly. That’s not the case yet.
As per Tsaklanos his 1/99 Investing Principles we monitor markets 99% of the time, and buy (actively do a trade) just 1% of the time. The excitement about XLNX may not be meant to buy this stock right now. It certainly is meant to catapult this to the top positions of our watchlist.
What makes us most excited is the continued strong growth in the mobile sector. This will only accelerate once 5G adoption takes place on a global scale.
The chart in the meantime suggests this stock arrived at a buy point. However, as markets are in rough waters right now we would suggest to give it more time. We might see more downside pressure in August of 2019 in which case this top 5G stock will be available at an even more attractive discount which is what smart investors continuously look for!
Followers should pay special attention to the trendline with annotation leg #2. If, and that’s a big IF, this support trendline holds, we know that Xilinx is likely in a massive bull market which will accelerate into leg #3 in the next few years. It’s one crucial take-away from the chart timeframe we have chosen for this article!
Anyways XLNX should hold a top spot on investors’ watchlists.