If You Invested $1000 in Skyworks Solutions 10 Years Ago, This Is How Much You'd Have Now

SWKS

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Skyworks Solutions (SWKS - Free Report) ten years ago? It may not have been easy to hold on to SWKS for all that time, but if you did, how much would your investment be worth today?

Skyworks Solutions' Business In-Depth

With that in mind, let's take a look at Skyworks Solutions' main business drivers.

Headquartered in Irvine, CA, Skyworks Solutions Inc. designs, manufactures, and markets a broad range of high-performance analog and mixed signal semiconductors that enable wireless connectivity.

The company’s products include power amplifiers (PAs), front-end modules (FEMs), radio frequency (RF) sub-systems, and cellular systems. Leveraging its core analog technologies, the company also offers a diverse portfolio of linear integrated circuits (ICs) that support automotive, broadband, cellular infrastructure, industrial and medical applications.

Skyworks Solutions reported revenues of $3.36 billion in fiscal 2020.

The company has designed its product portfolio around two markets — cellular handsets and analog semiconductors. The handset portfolio includes highly customized power amplifiers and front-end solutions that are used in a variety of cellular devices from entry level to multimedia platforms and smartphones.

Moreover, the company’s product portfolio is reinforced by approximately 3,950 global patents and other intellectual property. The company with industry-leading technology helps to offer highest levels of product performance and integration.

The company is engaged with key original equipment manufacturers (“OEMs”), smartphone providers and baseband reference design partners. Its chief customers include Amazon, Apple, Arris, Bose, Cisco, DJI, Ericsson, Foxconn, Garmin, Gemalto, General Electric, Google, Honeywell, Huawei, Itron, Lenovo, LG Electronics, Microsoft, Motorola, to name few.

The company has a diversified business in three areas: addressed markets, customer base and product offerings.

The company has more than 3,200 customers and over 2,500 analog components in markets like automotive, home and factory automation, infrastructure, medical, smart energy and wireless networking.

Skyworks faces stiff competition from Analog Devices, Broadcom, Maxim Integrated Products (to be acquired by Analog Devices), Qualcomm and Qorvo.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Skyworks Solutions ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in July 2011 would be worth $7,140.85, or a 614.08% gain, as of July 26, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 228.01% and the price of gold increased 7.13% over the same time frame in comparison.

Analysts are anticipating more upside for SWKS.

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. Additionally, 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. Markedly, shares of the company have outperformed the industry in the year-to-date period. Nevertheless, intensifying competition from radio frequency peers like Qorvo and customer concentration risks remain major headwinds, amid Huawei ban and coronavirus crisis led business impacts.

Over the past four weeks, shares have rallied 7.81%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.

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