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

Skyworks Solutions (SWKS) closed the most recent trading day at $169.41, moving +0.52% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%.

Heading into today, shares of the chipmaker had gained 4.33% over the past month, outpacing the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.

Investors will be hoping for strength from SWKS as it approaches its next earnings release. On that day, SWKS is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 70.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.1 billion, up 49.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.30 per share and revenue of $5 billion, which would represent changes of +68.03% and +48.91%, respectively, from the prior year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. SWKS is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note SWKS's current valuation metrics, including its Forward P/E ratio of 16.36. For comparison, its industry has an average Forward P/E of 16.36, which means SWKS is trading at a no noticeable deviation to the group.

We can also see that SWKS currently has a PEG ratio of 0.89. 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 1.2 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 198, putting it in the bottom 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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