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Skyworks Solutions (SWKS) Gains But Lags Market: What You Should Know

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Skyworks Solutions (SWKS - Free Report) closed at $160.34 in the latest trading session, marking a +0.41% move from the prior day. The stock lagged the S&P 500's daily gain of 1.05%.

Heading into today, shares of the chipmaker had lost 12.74% over the past month, lagging the Computer and Technology sector's loss of 9.29% and the S&P 500's loss of 5.07% in that time.

Wall Street will be looking for positivity from SWKS as it approaches its next earnings report date. In that report, analysts expect SWKS to post earnings of $2.54 per share. This would mark year-over-year growth of 37.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 36.09% 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. Within the past 30 days, our consensus EPS projection remained stagnant. SWKS currently has a Zacks Rank of #3 (Hold).

Digging into valuation, SWKS currently has a Forward P/E ratio of 13.71. Its industry sports an average Forward P/E of 13.71, so we one might conclude that SWKS is trading at a no noticeable deviation comparatively.

Also, we should mention that SWKS has a PEG ratio of 0.63. 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. SWKS's industry had an average PEG ratio of 0.85 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 242, which puts it in the bottom 5% 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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