Shares of Skyworks Solutions Inc. (SWKS - Free Report) have been performing well of late. The company designs, manufactures and markets a broad range of high performance analog and mixed signal semiconductors that enable wireless connectivity.
If you haven’t taken advantage of the share price appreciation yet, its time you hold the stock in your portfolio as it looks promising and is poised to carry the momentum ahead. This Zacks Rank #3 (Hold) stock has an estimated long-term earnings growth rate of 15.1%.
Skyworks’ shares have returned 28.3% on a year-to-date basis, substantially outperforming the industry’s rally of 21.9%.
What’s Going in Skyworks’ Favor?
Strong demand for Wi-Fi, Zigbee and LTE solutions have helped the company to gain traction. During the quarter, the company delivered fully integrated Zigbee and ISM modules for Bosch home security and Cisco Systems Inc’s (CSCO - Free Report) smart lighting systems.
Skyworks also initiated volume production of in-vehicle telematics at Hyundai and launched wireless networking engines within DirecTV's 4K Genie receivers. Further, the company supported Sonos' latest hi-fi speaker featuring Amazon.com Inc.’s (AMZN - Free Report) virtual assistant Alexa.
Moreover, Skyworks launched next-generation 802.11ax Wi-Fi solutions, enabling a fourfold increase in speed and supporting up to 50 simultaneous users. During the quarter, Skyworks’ also won contract at DJI for virtual reality and drone applications. The company also supplied precision GPS and antenna tuning for Fitbit Inc.'s newest smart watches.
With a customer base comprising the likes of Cisco in MIMO gateways, Nintendo in its Switch Gaming console; Fitbit, Garmin and LG, the company is on strong growth trajectory. Notably, the upcoming 5G upgrade cycle is also a major positive.
Skyworks outpaced the Zacks Consensus Estimate in the trailing four quarters, recording an encouraging positive average earnings surprise of 3.4%.
Concern remains
However, customer concentration remains a risk as a significant portion of Skyworks’ revenues comes from a handful of customers, particularly Apple.
Moreover, slow growth rate of the smartphone market and piled up inventories with Chinese smartphone providers are headwinds.
Our Take
We expect the aforementioned factors to help the company sustain strong momentum and stay afloat even amid difficult times. Hence, we suggest investors to hold on to the stock at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong buy) stocks here.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Shares of Skyworks Solutions Inc. (SWKS - Free Report) have been performing well of late. The company designs, manufactures and markets a broad range of high performance analog and mixed signal semiconductors that enable wireless connectivity.
If you haven’t taken advantage of the share price appreciation yet, its time you hold the stock in your portfolio as it looks promising and is poised to carry the momentum ahead. This Zacks Rank #3 (Hold) stock has an estimated long-term earnings growth rate of 15.1%.
Skyworks’ shares have returned 28.3% on a year-to-date basis, substantially outperforming the industry’s rally of 21.9%.
What’s Going in Skyworks’ Favor?
Strong demand for Wi-Fi, Zigbee and LTE solutions have helped the company to gain traction. During the quarter, the company delivered fully integrated Zigbee and ISM modules for Bosch home security and Cisco Systems Inc’s (CSCO - Free Report) smart lighting systems.
Skyworks also initiated volume production of in-vehicle telematics at Hyundai and launched wireless networking engines within DirecTV's 4K Genie receivers. Further, the company supported Sonos' latest hi-fi speaker featuring Amazon.com Inc.’s (AMZN - Free Report) virtual assistant Alexa.
Moreover, Skyworks launched next-generation 802.11ax Wi-Fi solutions, enabling a fourfold increase in speed and supporting up to 50 simultaneous users. During the quarter, Skyworks’ also won contract at DJI for virtual reality and drone applications. The company also supplied precision GPS and antenna tuning for Fitbit Inc.'s newest smart watches.
With a customer base comprising the likes of Cisco in MIMO gateways, Nintendo in its Switch Gaming console; Fitbit, Garmin and LG, the company is on strong growth trajectory. Notably, the upcoming 5G upgrade cycle is also a major positive.
Skyworks outpaced the Zacks Consensus Estimate in the trailing four quarters, recording an encouraging positive average earnings surprise of 3.4%.
Concern remains
However, customer concentration remains a risk as a significant portion of Skyworks’ revenues comes from a handful of customers, particularly Apple.
Moreover, slow growth rate of the smartphone market and piled up inventories with Chinese smartphone providers are headwinds.
Our Take
We expect the aforementioned factors to help the company sustain strong momentum and stay afloat even amid difficult times. Hence, we suggest investors to hold on to the stock at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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