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

Zacks Equity Research
·3 min read

Skyworks Solutions (SWKS) closed at $150.41 in the latest trading session, marking a -1.83% move from the prior day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Coming into today, shares of the chipmaker had gained 8.54% in the past month. In that same time, the Computer and Technology sector gained 5.2%, while the S&P 500 gained 2.78%.

Investors will be hoping for strength from SWKS as it approaches its next earnings release. In that report, analysts expect SWKS to post earnings of $2.07 per share. This would mark year-over-year growth of 23.21%. Meanwhile, our latest consensus estimate is calling for revenue of $1.06 billion, up 17.94% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $3.92 billion. These totals would mark changes of +22.02% and +16.68%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SWKS. 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.

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 remained stagnant. SWKS is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, SWKS is holding a Forward P/E ratio of 20.48. Its industry sports an average Forward P/E of 19.25, so we one might conclude that SWKS is trading at a premium comparatively.

It is also worth noting that SWKS currently has a PEG ratio of 1.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SWKS's industry had an average PEG ratio of 1.38 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 29, which puts it in the top 12% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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