Artificial intelligence play Skyworks Solutions, like other chipmakers, has struggled this year as the industry slogs through a slow-growth period. However, investors are looking for stronger growth in the back half of the year. On Monday the Relative Strength Rating for Skyworks stock rose to 74 from 70 last week.
Irvine, Calif.-based Skyworks Solutions makes a host of semiconductors including power management chips, clocks and timing chips and digital demodulators and TV tuners among others. Its chips are used in nearly every sector including autos, aerospace, Internet of Things, consumer electronics and the emerging artificial intelligence market.
Skyworks Stock A Funds Favorite
Watchlist candidate Skyworks has its fingers in a lot of lucrative pies, but it isn't among the leaders yet. It is nearing a critical milestone though. Market research shows that the best stocks tend to have an RS Rating of at least 80 in the early stages of their moves. See if Skyworks Solutions can continue to rebound and clear that threshold.
Among its other ratings, Skyworks owns a 75 Composite Rating and a C Accumulation/Distribution Rating. The C rating shows that big-money investors like insurance funds and ETFs are buying about as many shares as they're selling. One bullish indicator: The number of top-rated funds that own Skyworks stock rose from 1,730 in the December-ended quarter to 1,861 in March and 1,903 in June.
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Skyworks stock is working on a consolidation with a 123.69 entry. See if the stock can break out in volume at least 40% above average. On Monday Skyworks was down fractionally at 112.60, up about 48% from a mid-October 76.16 low.
Fundamentals Need Work
Skyworks posted negative growth for both the top and bottom lines last quarter. EPS fell 23% from the same quarter last year to $2.02, while revenue dipped 14% to $1.15 billion. Skyworks Solutions says on its website that it plans to announce fiscal third quarter results after the market closes on Aug. 7. It will hold a news conference after it releases the numbers.
Skyworks stock earns the No. 14 rank among its peers in the 32-stock Electronics-Semiconductor Manufacturing industry group. Swiss rival STMicroelectronics Is No. 2 in the group. Microcontroller, flash memory and mixed signal devices maker Microchip Technology is No. 1 among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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