Back to top

Image: Bigstock

Skyworks Solutions (SWKS) Stock Moves -0.19%: What You Should Know

Read MoreHide Full Article

Skyworks Solutions (SWKS - Free Report) closed the most recent trading day at $149.41, moving -0.19% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.85%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the chipmaker had lost 12.65% over the past month. This has lagged the Computer and Technology sector's loss of 0.5% and the S&P 500's loss of 0.97% in that time.

Skyworks Solutions will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.11, down 7.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.5 billion, down 0.51% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.60 per share and revenue of $5.73 billion. These totals would mark changes of +10.48% and +12.1%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Skyworks Solutions. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.58% lower. Skyworks Solutions is currently a Zacks Rank #4 (Sell).

Digging into valuation, Skyworks Solutions currently has a Forward P/E ratio of 12.9. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.9.

Investors should also note that SWKS has a PEG ratio of 1.03 right now. 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 1.03 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 242, putting 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.

To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Skyworks Solutions, Inc. (SWKS) - free report >>

Published in