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

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In the latest trading session, Skyworks Solutions (SWKS - Free Report) closed at $111.16, marking a -0.77% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.

Coming into today, shares of the chipmaker had gained 23.18% in the past month. In that same time, the Computer and Technology sector gained 12.65%, while the S&P 500 gained 5.73%.

Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release, which is expected to be February 6, 2023. The company is expected to report EPS of $2.59, down 17.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, down 12.81% from the year-ago period.

SWKS's full-year Zacks Consensus Estimates are calling for earnings of $9.54 per share and revenue of $4.99 billion. These results would represent year-over-year changes of -15.12% and -8.97%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.84% lower. Skyworks Solutions currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Skyworks Solutions is holding a Forward P/E ratio of 11.74. For comparison, its industry has an average Forward P/E of 11.74, which means Skyworks Solutions is trading at a no noticeable deviation to the group.

It is also worth noting that SWKS currently has a PEG ratio of 0.78. 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 1.8 at yesterday's closing price.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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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