Skyworks Solutions (SWKS - Free Report) closed the most recent trading day at $73.35, moving +0.95% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Coming into today, shares of the chipmaker had lost 7.73% in the past month. In that same time, the Computer and Technology sector lost 2.4%, while the S&P 500 gained 0.1%.
SWKS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.36, down 17.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $765.94 million, down 14.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.23 per share and revenue of $3.39 billion, which would represent changes of -13.71% and -12.3%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SWKS. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 7% lower. SWKS currently has a Zacks Rank of #4 (Sell).
In terms of valuation, SWKS is currently trading at a Forward P/E ratio of 11.66. Its industry sports an average Forward P/E of 12.09, so we one might conclude that SWKS is trading at a discount comparatively.
It is also worth noting that SWKS currently has a PEG ratio of 1.15. 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. The Semiconductors - Radio Frequency was holding an average PEG ratio of 1.13 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 254, which puts it in the bottom 1% 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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