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Skyworks Solutions (SWKS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Skyworks Solutions (SWKS - Free Report) closed at $92.87, marking a -1.56% move from the previous day. This change lagged the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq gained 0.02%.

Coming into today, shares of the chipmaker had lost 7.87% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.

Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release. On that day, Skyworks Solutions is projected to report earnings of $2.91 per share, which would represent year-over-year growth of 11.07%. Our most recent consensus estimate is calling for quarterly revenue of $1.4 billion, up 7.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.12 per share and revenue of $5.48 billion, which would represent changes of +5.9% and +7.3%, respectively, from the prior year.

Any recent changes to analyst estimates for Skyworks Solutions should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Skyworks Solutions is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Skyworks Solutions is currently trading at a Forward P/E ratio of 8.48. Its industry sports an average Forward P/E of 10.07, so we one might conclude that Skyworks Solutions is trading at a discount comparatively.

Investors should also note that SWKS has a PEG ratio of 0.88 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. The Semiconductors - Radio Frequency industry currently had an average PEG ratio of 1.15 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 214, which puts it in the bottom 16% 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.

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