Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know
Skyworks Solutions (SWKS) closed at $116.77 in the latest trading session, marking a +1.42% move from the prior day. This change outpaced the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 7.48%.
Heading into today, shares of the chipmaker had lost 0.61% over the past month, lagging the Computer and Technology sector's gain of 2.79% and outpacing the S&P 500's loss of 2.95% in that time.
Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release. The company is expected to report EPS of $2.01, down 23.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, down 13.96% from the prior-year quarter.
SWKS's full-year Zacks Consensus Estimates are calling for earnings of $9.28 per share and revenue of $4.97 billion. These results would represent year-over-year changes of -17.44% and -9.43%, respectively.
Any recent changes to analyst estimates for Skyworks Solutions should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 1.44% lower. Skyworks Solutions is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Skyworks Solutions is currently trading at a Forward P/E ratio of 12.4. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.4.
Also, we should mention that SWKS has a PEG ratio of 0.83. 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 1.73 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 185, which puts it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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