In the latest trading session, Skyworks Solutions (SWKS) closed at $105.84, marking a -0.22% move from the previous day. This move lagged the S&P 500’s daily gain of 0.13%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today’s trading, shares of the chipmaker had gained 8.2% over the past month. This has outpaced the Computer and Technology sector’s loss of 13.84% and the S&P 500’s gain of 5.55% in that time.
Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release, which is expected to be August 4, 2022. On that day, Skyworks Solutions is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 9.77%. Meanwhile, our latest consensus estimate is calling for revenue of $1.23 billion, up 10.27% from the prior-year quarter.
SWKS’s full-year Zacks Consensus Estimates are calling for earnings of $11.01 per share and revenue of $5.5 billion. These results would represent year-over-year changes of +4.86% and +7.71%, respectively.
Investors might also notice recent changes to analyst estimates for Skyworks Solutions. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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, 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 0.15% lower. Skyworks Solutions currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Skyworks Solutions is holding a Forward P/E ratio of 9.63. This represents a discount compared to its industry’s average Forward P/E of 9.98.
Also, we should mention that SWKS has a PEG ratio of 0.9. 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 0.95 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 27, putting it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
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