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Skyworks Solutions (SWKS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Skyworks Solutions (SWKS - Free Report) closed at $171.73, marking a -0.53% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day.

Coming into today, shares of the chipmaker had lost 5.89% in the past month. In that same time, the Computer and Technology sector gained 0.55%, while the S&P 500 lost 0.56%.

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 $2.54 per share, which would represent year-over-year growth of 37.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 36.09% from the year-ago period.

SWKS's full-year Zacks Consensus Estimates are calling for earnings of $10.42 per share and revenue of $5.1 billion. These results would represent year-over-year changes of +69.98% and +51.98%, respectively.

It is also important to note the recent changes to analyst estimates for SWKS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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).

Digging into valuation, SWKS currently has a Forward P/E ratio of 16.57. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.57.

Meanwhile, SWKS's PEG ratio is currently 0.77. 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. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 10% 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.

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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