Skyworks Solutions Inc.: Investing in the New World (SWKS)

Advertisement

We are in the midst of a brave new world, a world that will change everything we know about life. As a result, we are entering a period of transformative investment opportunities in companies leading the charge into this new world of things like artificial intelligence, data mining, cloud computing, drones, the Internet of Things (IOT), robotics, driverless cars and more.

Skyworks Solutions Inc.: Investing in the New World (SWKS)This is exciting for us both as individuals and as investors because we have the opportunity to profit from these great companies. Riches will be generated for those who invest in the right companies.

One that’s worth a look is Skyworks Solutions Inc. (SWKS) — a designer, developer and manufacturer of high-performance analog semiconductor products that cater to a wide variety of industries around the world. It has its hands in smarter cars, connected homes and enhanced wearable devices on top of a complete range of advanced wireless devices such as smartphones and tablets.

The company’s goal is to “streamline and solve the real-world challenges” of its customers, using its technology to “turn complication into clarity.” (I’m all for that.) And with technology experts predicting that there will be 70 billion connected devices across the world by 2020, Skyworks is in the prime position to capitalize on the growing industry.

SWKS Stock at the Forefront

SKWS peaked last summer, reaching an all-time high of $112.88 on June 19. However, the broad volatility that has plagued the market since October has certainly pressured the stock, with it falling to a fresh 52-week low of $58.50 as recently as Wednesday.

swks-012116

Also putting unwanted pressure on the company is the fact that Apple Inc. (AAPL) is one of Skyworks’ largest customers. Many Apple suppliers have been hurt recently by investor concerns that the tech behemoth will report its first-ever decline in iPhone sales when it releases quarterly results on Jan. 26. Some speculate that slowing sales could cause the company to lower its production, in turn hurting SWKS stock’s bottom line.

However, these depressed prices are where some folks see the opportunity. Skyworks was recently upgraded by Needham & Company from a “hold” to a “buy,” with the research firm noting that the iPhone weakness is already discounted in both forward estimates and share price. And I tend to agree with them.

SWKS stock’s fiscal first-quarter earnings are expected out Jan. 28, and analysts are currently looking for EPS of $1.58 (up from $1.26 last year) on revenue of $916 million (up from $806 million last year).

Bottom Line for SWKS Stock

There’s no doubt that Skyworks is helping to revolutionize the world we know, and I expect that it will continue to do so in both the near- and long-term future.

This company isn’t going anywhere anytime soon, and I think the stock’s current prices are presenting an attractive opportunity for those looking to benefit from the brave new world of the future.

Based on recent action, I like SKWS better than competitor Qualcomm (QCOM), despite the latter’s 4.2% dividend yield.

Curious what Wall Street insider Charles Payne really thinks? Get more behind-the-scenes insights, valuable market research and hands-on guidance including live stock recommendations from Fox Business’s rising star. Charles Payne’s Smart Talk is absolutely FREE for a limited-time only. Sign up today!

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2016/01/skyworks-solutions-inc-investing-in-the-new-world-swks/.

©2024 InvestorPlace Media, LLC