In the latest trading session, Skyworks Solutions (SWKS) closed at $177.43, marking a -0.16% move from the previous day. This change was narrower than the S&P 500’s 0.46% loss on the day.
Prior to today’s trading, shares of the chipmaker had lost 3.83% over the past month. This has lagged the Computer and Technology sector’s gain of 3.42% and the S&P 500’s gain of 1.93% in that time.
SWKS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.54, up 37.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, up 36.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.42 per share and revenue of $5.1 billion. These totals would mark changes of +69.98% and +51.98%, respectively, from last year.
Any recent changes to analyst estimates for SWKS 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SWKS currently has a Zacks Rank of #2 (Buy).
Digging into valuation, SWKS currently has a Forward P/E ratio of 17.05. For comparison, its industry has an average Forward P/E of 17.05, which means SWKS is trading at a no noticeable deviation to the group.
We can also see that SWKS currently has a PEG ratio of 0.88. 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 1.02 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 118, which puts it in the top 47% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report
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