In the latest trading session, Skyworks Solutions (SWKS) closed at $73.04, marking a -1.19% move from the previous day. This move lagged the S&P 500's daily gain of 0.86%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 1.37%.
Heading into today, shares of the chipmaker had gained 8.77% over the past month, outpacing the Computer and Technology sector's gain of 6.94% and the S&P 500's gain of 8.11% in that time.
Wall Street will be looking for positivity from SWKS as it approaches its nex t earnings report date. This is expected to be February 5, 2019. In tha t report , analysts expect SWKS to post earnings of $1.84 per share. This would mark a year-over-year decline of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $975.05 million, down 7.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.84 per share and revenue of $3.73 billion. These totals would mark changes of -5.26% and -3.51%, respectively, from last year.
Any recent changes to analyst estimates for SWKS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 6.63% lower. SWKS is currently a Zacks Rank #4 (Sell).
In terms of valuation, SWKS is currently trading at a Forward P/E ratio of 10.81. For comparison, its industry has an average Forward P/E of 11.15, which means SWKS is trading at a discount to the group.
We can also see that SWKS currently has a PEG ratio of 0.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductors - Radio Frequency was holding an average PEG ratio of 1.06 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 226, which puts it in the bottom 12% 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.
To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.