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Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

Skyworks Solutions (SWKS) closed at $135.20 in the latest trading session, marking a +0.96% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the chipmaker had lost 6.16% over the past month, lagging the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 5.02% in that time.

Wall Street will be looking for positivity from SWKS as it approaches its next earnings report date. The company is expected to report EPS of $1.51, down 0.66% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $840.22 million, up 1.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.79 per share and revenue of $3.24 billion. These totals would mark changes of -6.16% and -4.06%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SWKS. These recent revisions tend to reflect the evolving nature of short-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. 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 remained stagnant within the past month. SWKS is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, SWKS currently has a Forward P/E ratio of 23.13. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 23.13.

We can also see that SWKS currently has a PEG ratio of 1.72. 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. The Semiconductors - Radio Frequency was holding an average PEG ratio of 1.58 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 126, putting it in the top 50% 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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Zacks Investment Research