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Skyworks Solutions (SWKS) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Skyworks Solutions (SWKS) closed at $111.70, marking a -1.35% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.87%, and the tech-heavy Nasdaq gained 2.77%.

Coming into today, shares of the chipmaker had lost 7.01% in the past month. In that same time, the Computer and Technology sector lost 2.73%, while the S&P 500 lost 5.06%.

Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release. On that day, Skyworks Solutions is projected to report earnings of $2.01 per share, which would represent a year-over-year decline of 23.57%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, down 13.96% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.29 per share and revenue of $4.97 billion, which would represent changes of -17.35% and -9.43%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Skyworks Solutions. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.3% lower within the past month. Skyworks Solutions is currently a Zacks Rank #3 (Hold).

Digging into valuation, Skyworks Solutions currently has a Forward P/E ratio of 12.19. Its industry sports an average Forward P/E of 12.19, so we one might conclude that Skyworks Solutions is trading at a no noticeable deviation comparatively.

It is also worth noting that SWKS currently has a PEG ratio of 0.81. 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. SWKS's industry had an average PEG ratio of 1.68 as of yesterday's close.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.

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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report

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