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Skyworks Solutions (SWKS) Gains But Lags Market: What You Should Know
Skyworks Solutions (SWKS - Free Report) closed at $88.85 in the latest trading session, marking a +0.14% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.45%.
Coming into today, shares of the chipmaker had lost 6.59% in the past month. In that same time, the Computer and Technology sector lost 6.38%, while the S&P 500 lost 4.33%.
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 $2.58 per share. This would mark a year-over-year decline of 17.83%. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, down 12.53% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.61 per share and revenue of $5.04 billion. These totals would mark changes of -14.5% and -8.07%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Skyworks Solutions. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. Skyworks Solutions is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Skyworks Solutions is holding a Forward P/E ratio of 9.23. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.23.
We can also see that SWKS currently has a PEG ratio of 0.62. 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 was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.