In the latest trading session, Skyworks Solutions (SWKS) closed at $93.01, marking a -0.78% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.11%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq added 0.1%.
Heading into today, shares of the chipmaker had lost 0.01% over the past month, outpacing the Computer and Technology sector’s loss of 4.59% and the S&P 500’s loss of 2.19% in that time.
Skyworks Solutions will be looking to display strength as it nears its next earnings release. On that day, Skyworks Solutions is projected to report earnings of $2.58 per share, which would represent a year-over-year decline of 17.83%. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, down 12.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.61 per share and revenue of $5.04 billion. These totals would mark changes of -14.5% and -8.07%, respectively, from last year.
Any recent changes to analyst estimates for Skyworks Solutions should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.32% lower. Skyworks Solutions is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Skyworks Solutions currently has a Forward P/E ratio of 9.76. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 9.76.
It is also worth noting that SWKS currently has a PEG ratio of 0.65. 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 1.55 as of yesterday’s close.
The Semiconductors – Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 6% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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