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

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In the latest trading session, Skyworks Solutions (SWKS) closed at $155.65, marking a +1.99% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Coming into today, shares of the chipmaker had gained 4.26% in the past month. In that same time, the Computer and Technology sector lost 5.11%, while the S&P 500 gained 0.22%.

Investors will be hoping for strength from Skyworks Solutions as it approaches its next earnings release. In that report, analysts expect Skyworks Solutions to post earnings of $3.11 per share. This would mark a year-over-year decline of 7.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.5 billion, down 0.51% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.63 per share and revenue of $5.73 billion. These totals would mark changes of +10.76% and +12.1%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Skyworks Solutions. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Skyworks Solutions is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Skyworks Solutions is currently trading at a Forward P/E ratio of 13.12. Its industry sports an average Forward P/E of 13.12, so we one might conclude that Skyworks Solutions is trading at a no noticeable deviation comparatively.

We can also see that SWKS currently has a PEG ratio of 0.99. 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. The Semiconductors - Radio Frequency was holding an average PEG ratio of 1 at yesterday's closing price.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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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