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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 $152.63 in the latest trading session, marking a +1.81% move from the prior day. This move outpaced the S&P 500's daily gain of 1.78%. Elsewhere, the Dow gained 1.61%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the chipmaker had lost 4.23% in the past month. In that same time, the Computer and Technology sector lost 6.2%, while the S&P 500 lost 2.63%.

Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release. In that report, analysts expect Skyworks Solutions to post earnings of $3.11 per share. This would mark a year-over-year decline of 7.44%. Meanwhile, our latest consensus estimate is calling for revenue of $1.5 billion, down 0.51% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.60 per share and revenue of $5.73 billion, which would represent changes of +10.48% and +12.1%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Skyworks Solutions. 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.

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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Skyworks Solutions is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Skyworks Solutions currently has a Forward P/E ratio of 12.92. For comparison, its industry has an average Forward P/E of 12.92, which means Skyworks Solutions is trading at a no noticeable deviation to the group.

Investors should also note that SWKS has a PEG ratio of 0.97 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. SWKS's industry had an average PEG ratio of 0.99 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 245, putting it in the bottom 4% 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.

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


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