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

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In the latest trading session, Skyworks Solutions (SWKS - Free Report) closed at $170, marking a -0.51% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%.

Heading into today, shares of the chipmaker had lost 13.64% over the past month, lagging the Computer and Technology sector's loss of 1.97% and the S&P 500's gain of 0.41% in that time.

Wall Street will be looking for positivity from SWKS as it approaches its next earnings report date. On that day, SWKS is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 71.2%. Our most recent consensus estimate is calling for quarterly revenue of $1.1 billion, up 49.42% from the year-ago period.

SWKS's full-year Zacks Consensus Estimates are calling for earnings of $10.32 per share and revenue of $5 billion. These results would represent year-over-year changes of +68.35% and +48.91%, respectively.

It is also important to note the recent changes to analyst estimates for SWKS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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 has moved 0.68% lower within the past month. SWKS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, SWKS is holding a Forward P/E ratio of 16.55. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.55.

Investors should also note that SWKS has a PEG ratio of 0.91 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. SWKS's industry had an average PEG ratio of 1.23 as of yesterday's close.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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