In the latest trading session, Skyworks Solutions (SWKS) closed at $79.75, marking a +0.61% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.49%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.8%.
Heading into today, shares of the chipmaker had gained 3.06% over the past month, lagging the Computer and Technology sector's gain of 3.08% and outpacing the S&P 500's gain of 3% 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 $1.50 per share, which would represent a year-over-year decline of 22.68%. Our most recent consensus estimate is calling for quarterly revenue of $825.39 million, down 18.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $3.38 billion. These totals would mark changes of -14.82% and -12.71%, respectively, from last year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. SWKS is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, SWKS currently has a Forward P/E ratio of 12.88. This valuation marks a discount compared to its industry's average Forward P/E of 13.78.
Investors should also note that SWKS has a PEG ratio of 1.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductors - Radio Frequency was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.
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