Skyworks Solutions (SWKS) Outpaces Stock Market Gains: What You Should Know
Skyworks Solutions (SWKS) closed at $152.54 in the latest trading session, marking a +0.93% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.33%.
Heading into today, shares of the chipmaker had gained 12.58% over the past month, outpacing the Computer and Technology sector's gain of 6.61% and the S&P 500's gain of 3.42% in that time.
Investors will be hoping for strength from SWKS as it approaches its next earnings release, which is expected to be November 2, 2020. In that report, analysts expect SWKS to post earnings of $1.52 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $842.51 million, up 1.83% from the prior-year quarter.
Investors should also note any 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.
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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% higher. SWKS is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that SWKS has a Forward P/E ratio of 22.24 right now. Its industry sports an average Forward P/E of 22.24, so we one might conclude that SWKS is trading at a no noticeable deviation comparatively.
Investors should also note that SWKS has a PEG ratio of 1.76 right now. 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. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
