Back to top

Image: Bigstock

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

Read MoreHide Full Article

Skyworks Solutions (SWKS - Free Report) closed at $161.25 in the latest trading session, marking a +0.92% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the chipmaker had gained 4.83% in the past month. In that same time, the Computer and Technology sector gained 4.06%, while the S&P 500 gained 5.76%.

Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release. The company is expected to report EPS of $3.11, down 7.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.5 billion, down 0.51% from the year-ago period.

SWKS's full-year Zacks Consensus Estimates are calling for earnings of $11.60 per share and revenue of $5.73 billion. These results would represent year-over-year changes of +10.48% and +12.1%, respectively.

Investors might also notice recent changes to analyst estimates for Skyworks Solutions. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Skyworks Solutions is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Skyworks Solutions's current valuation metrics, including its Forward P/E ratio of 13.77. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.77.

Meanwhile, SWKS's PEG ratio is currently 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.

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 gauges the strength of our 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.


See More Zacks Research for These Tickers


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


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

Published in