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

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Skyworks Solutions (SWKS - Free Report) closed the most recent trading day at $98.38, moving +1.94% from the previous trading session. This change outpaced the S&P 500's 1.47% gain on the day. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, added 1.11%.

Prior to today's trading, shares of the chipmaker had gained 3.82% over the past month. This has lagged the Computer and Technology sector's gain of 13.35% and the S&P 500's gain of 16.09% in that time.

Wall Street will be looking for positivity from SWKS as it approaches its next earnings report date. This is expected to be May 4, 2020. The company is expected to report EPS of $1.34, down 8.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $765.69 million, down 5.52% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.79 per share and revenue of $3.25 billion, which would represent changes of -6.16% and -3.76%, respectively, from the prior year.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 4.86% lower. SWKS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SWKS is currently trading at a Forward P/E ratio of 16.68. This valuation marks a premium compared to its industry's average Forward P/E of 15.93.

Investors should also note that SWKS has a PEG ratio of 1.41 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. SWKS's industry had an average PEG ratio of 1.66 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 22, putting it in the top 9% 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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