Skyworks Solutions (SWKS) closed the most recent trading day at $94.52, moving -0.68% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.74%. Elsewhere, the Dow lost 0.9%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today’s trading, shares of the chipmaker had gained 2.08% over the past month. This has lagged the Computer and Technology sector’s gain of 6.65% and the S&P 500’s gain of 3.74% in that time.
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 $2.59 per share, which would represent a year-over-year decline of 17.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, down 12.14% from the year-ago period.
SWKS’s full-year Zacks Consensus Estimates are calling for earnings of $9.66 per share and revenue of $5.06 billion. These results would represent year-over-year changes of -14.06% and -7.78%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.65% lower within the past month. Skyworks Solutions is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Skyworks Solutions is holding a Forward P/E ratio of 9.85. Its industry sports an average Forward P/E of 9.85, so we one might conclude that Skyworks Solutions is trading at a no noticeable deviation comparatively.
Meanwhile, SWKS’s PEG ratio is currently 0.66. 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. The Semiconductors – Radio Frequency industry currently had an average PEG ratio of 1.58 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 234, which puts it in the bottom 8% 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.
To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.
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