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Should You Buy Skyworks Solutions Inc (SWKS) Stock Thursday?

Thursday, August 18, 2022 03:45 PM | InvestorsObserver Analysts

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Should You Buy Skyworks Solutions Inc (SWKS) Stock Thursday?

InvestorsObserver gives Skyworks Solutions Inc (SWKS) a strong valuation score of 99 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. SWKS currently holds a better value than 99% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 99
SWKS gets a 99 Valuation Rank today. Find out what this means to you and get the rest of the rankings on SWKS!

Metrics Analysis

SWKS has a trailing twelve month Price to Earnings (PE) ratio of 13.8. The historical average of roughly 15 shows a average value for SWKS stock as investors are paying fair share prices relative to the company's earnings. SWKS's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 7.87 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
SWKS currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.99. The market is currently fairly valuing SWKS in relation to its projected growth due to the PEG ratio being around the fair market value of 1. SWKS's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty adequate picture for SWKS at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for SWKS are around the average of the market resulting in a valuation score of 99. Click Here to get the full Report on Skyworks Solutions Inc (SWKS) stock.

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