In the latest trading session, Skyworks Solutions (SWKS - Free Report) closed at $117.85, marking a +1.71% move from the previous day. This change outpaced the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.67%.
Coming into today, shares of the chipmaker had gained 20.65% in the past month. In that same time, the Computer and Technology sector gained 2.67%, while the S&P 500 gained 2.44%.
SWKS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.65, down 9.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $880.29 million, down 9.44% from the year-ago period.
SWKS's full-year Zacks Consensus Estimates are calling for earnings of $6.37 per share and revenue of $3.44 billion. These results would represent year-over-year changes of +3.24% and +1.79%, respectively.
Any recent changes to analyst estimates for SWKS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SWKS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that SWKS has a Forward P/E ratio of 18.19 right now. For comparison, its industry has an average Forward P/E of 19.23, which means SWKS is trading at a discount to the group.
Also, we should mention that SWKS has a PEG ratio of 1.27. 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. SWKS's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.