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Skyworks Solutions (SWKS) Gains As Market Dips: What You Should Know

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Skyworks Solutions (SWKS - Free Report) closed the most recent trading day at $80.13, moving +0.79% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the chipmaker had lost 2.53% over the past month, lagging the Computer and Technology sector's gain of 2.89% and the S&P 500's gain of 1.81% 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 $1.30, down 13.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $810.56 million, down 11.26% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.98 per share and revenue of $3.60 billion. These totals would mark changes of -9.8% and -6.94%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SWKS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.32% lower. SWKS is currently a Zacks Rank #4 (Sell).

Digging into valuation, SWKS currently has a Forward P/E ratio of 12.14. This represents a discount compared to its industry's average Forward P/E of 12.16.

Investors should also note that SWKS has a PEG ratio of 1.11 right now. 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. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.12 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 222, which puts it in the bottom 13% 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.

To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.


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