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Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know
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Skyworks Solutions (SWKS - Free Report) closed at $172.13 in the latest trading session, marking a +0.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.12%.
Coming into today, shares of the chipmaker had lost 10.07% in the past month. In that same time, the Computer and Technology sector lost 5.18%, while the S&P 500 lost 0.76%.
SWKS will be looking to display strength as it nears its next earnings release. On that day, SWKS is projected to report earnings of $2.34 per share, which would represent year-over-year growth of 74.63%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 50.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.27 per share and revenue of $4.93 billion. These totals would mark changes of +67.54% and +46.8%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SWKS. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. SWKS is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, SWKS is currently trading at a Forward P/E ratio of 16.67. Its industry sports an average Forward P/E of 18.19, so we one might conclude that SWKS is trading at a discount comparatively.
Also, we should mention that SWKS has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know
Skyworks Solutions (SWKS - Free Report) closed at $172.13 in the latest trading session, marking a +0.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.12%.
Coming into today, shares of the chipmaker had lost 10.07% in the past month. In that same time, the Computer and Technology sector lost 5.18%, while the S&P 500 lost 0.76%.
SWKS will be looking to display strength as it nears its next earnings release. On that day, SWKS is projected to report earnings of $2.34 per share, which would represent year-over-year growth of 74.63%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 50.23% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.27 per share and revenue of $4.93 billion. These totals would mark changes of +67.54% and +46.8%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SWKS. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. SWKS is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, SWKS is currently trading at a Forward P/E ratio of 16.67. Its industry sports an average Forward P/E of 18.19, so we one might conclude that SWKS is trading at a discount comparatively.
Also, we should mention that SWKS has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.