Skyworks Solutions (SWKS) Ascends But Remains Behind Market: Some Facts to Note
The latest trading session saw Skyworks Solutions (SWKS) ending at $111.61, denoting a +0.31% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
The chipmaker's shares have seen an increase of 17.45% over the last month, surpassing the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Skyworks Solutions in its forthcoming earnings report. In that report, analysts expect Skyworks Solutions to post earnings of $1.95 per share. This would mark a year-over-year decline of 24.71%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, down 9.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.02 per share and revenue of $4.46 billion, which would represent changes of -17.61% and -6.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Skyworks Solutions. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% lower within the past month. Currently, Skyworks Solutions is carrying a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Skyworks Solutions is holding a Forward P/E ratio of 15.84. This represents no noticeable deviation compared to its industry's average Forward P/E of 15.84.
It's also important to note that SWKS currently trades at a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Semiconductors - Radio Frequency industry held an average PEG ratio of 1.22.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 12% 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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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
