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Skyworks Solutions (SWKS) Gains But Lags Market: What You Should Know

Zacks Equity Research

Skyworks Solutions (SWKS) closed the most recent trading day at $119.65, moving +0.09% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 0.81%.

Heading into today, shares of the chipmaker had gained 9.38% over the past month, outpacing the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 3.55% in that time.

Wall Street will be looking for positivity from SWKS as it approaches its next earnings report date. On that day, SWKS is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 9.84%. Meanwhile, our latest consensus estimate is calling for revenue of $880.29 million, down 9.44% from the prior-year quarter.

SWKS's full-year Zacks Consensus Estimates are calling for earnings of $6.37 per share and revenue of $3.44 billion. These results would represent year-over-year changes of +3.24% and +1.79%, respectively.

Investors should also note any recent changes to analyst estimates for SWKS. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SWKS currently has a Zacks Rank of #3 (Hold).

In terms of valuation, SWKS is currently trading at a Forward P/E ratio of 18.77. This represents a discount compared to its industry's average Forward P/E of 19.31.

We can also see that SWKS currently has a PEG ratio of 1.31. 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. The Semiconductors - Radio Frequency was holding an average PEG ratio of 1.49 at yesterday's closing price.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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