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Top Stock Picks for Week of August 2, 2021

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Skyworks Solutions Inc. (SWKS - Free Report) designs, manufactures, and markets a broad range of high-performance analog and mixed signal semiconductors that enable wireless connectivity.Skyworks’ is benefiting from accelerated 5G deployment and increasing demand for Wi-Fi 6 solutions. The company’s Sky5 product portfolio is facilitating several 5G smartphone launches and its offerings have been selected by Samsung, VIVO, and Xiaomi and other Tier-1 players. Moreover, improving iPhone 12 favors growth prospects of the company. Further, Skyworks is aggressively expanding into new vertical markets. Skyworks’ diversified portfolio positions it well to capitalize on momentum witnessed across telemedicine, and remote work, online learning, and video streaming triggered by coronavirus crisis. Skyworks Solutions reported third-quarter fiscal 2021 non-GAAP earnings that beat the Zacks Consensus Estimate and surged by double digits year over year. Markedly, shares of the company have outperformed the industry in the year-to-date period. Skyworks has a debt-free balance sheet with ample liquidity position.

Dollar General Corporation (DG - Free Report) is one of the largest discount retailers in the United States.Shares of Dollar General have increased in the past three months. Better pricing, private label offerings, effective inventory management and merchandise initiatives bode well. Dollar General’s initiatives such as DG Fresh, Fast Track, non-consumables, and digitization should benefit same-store sales.  The company posted better-than-expected first-quarter fiscal 2021 results, despite a challenging backdrop. We note that the government stimulus payment favorably impacted the performance. While the top line fell marginally, the bottom-line grew year over year. Markedly, the company registered net sales growth in non-consumable categories and witnessed gross margin expansion. Following a stellar start, the company raised fiscal 2021 view. Dollar General has been making prudent investments relating to store infrastructure, store openings, expansions, remodels and relocations to drive revenues. Dollar General has been actively managing cash flows, returning much of free cash to investors through share repurchases and dividends.  


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