In the latest trading session, Skyworks Solutions (SWKS) closed at $70.15, marking a +1.04% move from the previous day. The stock lagged the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 1.66%.
Coming into today, shares of the chipmaker had lost 16.99% in the past month. In that same time, the Computer and Technology sector lost 6.94%, while the S&P 500 lost 2.76%.
Wall Street will be looking for positivity from SWKS as it approaches its next earnings report date. In that report, analysts expect SWKS to post earnings of $1.40 per share. This would mark a year-over-year decline of 14.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $765.94 million, down 14.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.34 per share and revenue of $3.42 billion. These totals would mark changes of -12.19% and -11.5%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SWKS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 4.74% lower within the past month. SWKS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that SWKS has a Forward P/E ratio of 10.95 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.8.
We can also see that SWKS currently has a PEG ratio of 1.08. 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 1.1 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 247, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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