Skyworks Solutions (SWKS - Free Report) closed at $153.31 in the latest trading session, marking a +0.07% move from the prior day. This change outpaced the S&P 500's 0.66% loss on the day. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Heading into today, shares of the chipmaker had gained 8.72% over the past month, outpacing the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 5.22% in that time.
Investors will be hoping for strength from SWKS as it approaches its next earnings release. The company is expected to report EPS of $1.52, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $842.51 million, up 1.83% from the year-ago period.
Investors should also note any recent changes to analyst estimates for SWKS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% higher. SWKS is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that SWKS has a Forward P/E ratio of 22.54 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 22.54.
Investors should also note that SWKS has a PEG ratio of 1.78 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 1.67 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 86, which puts it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.