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Top Stock Picks for Week of February 8, 2021

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General Electric Company (GE - Free Report)   is popular for its LEAP aircraft engines, Heavy-Duty gas turbines, Haliade-X and Cypress wind turbines, and healthcare solutions.In the past three months, General Electric’s shares have outperformed the industry. In fourth-quarter 2020, its earnings met estimates, while sales surpassed the same by 3.1%. In the quarters ahead, the company is poised to gain from its portfolio-restructuring program, expansion in digital business, efforts to deleverage balance sheet and solid liquidity position. Moreover, its efforts are on track to reduce the exposure to the GE Capital business. For 2021, it anticipates adjusted earnings per share of 15-25 cents. Industrial organic revenues are predicted to increase in low-single digits in the year, while adjusted organic margin is expected to expand 250 basis points. Also, Industrial free cash flow is expected to be $2.5-$4.5 billion in 2021. General Electric is working diligently to improve its liquidity and manage its leverage.

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' Q2 results benefited from accelerated 5G deployment and increasing demand for Wi-Fi 6 solutions. Moreover, Skyworks provided encouraging guidance for second-quarter fiscal 2021. Markedly, shares of the company have outperformed the industry in the past year. The company’s Sky5 product portfolio is facilitating several 5G smartphone launches and its offerings were selected by Samsung, VIVO, and Xiaomi and other Tier-1 players. Also, 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. Based on order visibility, Skyworks expects continuous strength in the near future as the products continue to gain momentum. Skyworks has a debt-free balance sheet with ample liquidity position.    

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