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In the latest trading session, Skyworks Solutions (SWKS) closed at $158.65, marking a -0.51% move from the previous day. This change lagged the S&P 500’s 0.24% loss on the day.

Heading into today, shares of the chipmaker had lost 12.01% over the past month, lagging the Computer and Technology sector’s loss of 5.49% and the S&P 500’s loss of 2.12% in that time.

Investors will be hoping for strength from SWKS as it approaches its next earnings release. The company is expected to report EPS of $2.54, up 37.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, up 36.09% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for SWKS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

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.

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 remained stagnant. SWKS is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note SWKS’s current valuation metrics, including its Forward P/E ratio of 13.69. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 13.69.

We can also see that SWKS currently has a PEG ratio of 0.63. 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. SWKS’s industry had an average PEG ratio of 0.85 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 228, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.

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Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report
 
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