Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know

Skyworks Solutions (SWKS) closed at $90.16 in the latest trading session, marking a +0.46% move from the prior day. This change outpaced the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.2%.

Heading into today, shares of the chipmaker had lost 11.36% over the past month, lagging the Computer and Technology sector's loss of 8.36% and the S&P 500's loss of 8.32% in that time.

Skyworks Solutions will be looking to display strength as it nears its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $1.23 billion, up 10.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.05 per share and revenue of $5.51 billion. These totals would mark changes of +5.24% and +7.83%, respectively, from last year.

Any recent changes to analyst estimates for Skyworks Solutions should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Skyworks Solutions currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Skyworks Solutions has a Forward P/E ratio of 8.12 right now. This valuation marks a discount compared to its industry's average Forward P/E of 8.66.

Also, we should mention that SWKS 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 0.99 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 228, putting it in the bottom 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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