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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 $189.29 in the latest trading session, marking a +0.62% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day.

Prior to today's trading, shares of the chipmaker had gained 9.53% over the past month. This has outpaced the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.77% in that time.

Investors will be hoping for strength from SWKS as it approaches its next earnings release. In that report, analysts expect SWKS to post earnings of $2.34 per share. This would mark year-over-year growth of 74.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 50.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.27 per share and revenue of $4.93 billion, which would represent changes of +67.54% and +46.82%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SWKS. These revisions help to show the ever-changing nature of 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. 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 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 0.03% higher. SWKS currently has a Zacks Rank of #3 (Hold).

Investors should also note SWKS's current valuation metrics, including its Forward P/E ratio of 18.38. For comparison, its industry has an average Forward P/E of 18.38, which means SWKS is trading at a no noticeable deviation to the group.

Meanwhile, SWKS's PEG ratio is currently 0.97. 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. SWKS's industry had an average PEG ratio of 1.13 as of yesterday's close.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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