In the latest trading session, Skyworks Solutions (SWKS) closed at $75.02, marking a +1.83% move from the previous day. This move outpaced the S&P 500's daily loss of 2.93%. At the same time, the Dow lost 3.04%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the chipmaker had lost 37.3% over the past month. This has lagged the Computer and Technology sector's loss of 29.2% and the S&P 500's loss of 31.71% in that time.
Investors will be hoping for strength from SWKS as it approaches its next earnings release. On that day, SWKS is projected to report earnings of $1.33 per share, which would represent a year-over-year decline of 9.52%. Meanwhile, our latest consensus estimate is calling for revenue of $765.24 million, down 5.57% from the prior-year quarter.
SWKS's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $3.38 billion. These results would represent year-over-year changes of -1.13% and +0.17%, respectively.
It is also important to note the recent changes to analyst estimates for SWKS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 5.99% 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 12.07 right now. Its industry sports an average Forward P/E of 11.67, so we one might conclude that SWKS is trading at a premium comparatively.
Meanwhile, SWKS's PEG ratio is currently 1.02. 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 1.21 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 62, putting it in the top 25% 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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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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