Skyworks Solutions Stock Seeking Another Bullish Q1

SWKS tends to outperform in the first quarter

Managing Editor
Jan 2, 2019 at 11:31 AM
facebook X logo linkedin


It was a brutal 2018 for chip stocks, and Skyworks Solutions Inc (NASDAQ:SWKS) was no exception. The semiconductor name shed 32% last year, but there could be clearer skies ahead, if history is any indicator. 

For one, Skyworks stock tends to outperform during the first quarter, looking back 10 years. According to Schaeffer's Senior Quantitative Analyst Rocky White, SWKS sports an average return of 25.2% during the first quarter, and was positive all 10 times. This is the best return of the stocks we tracked on the S&P 500. 

Best SPX Stocks First Quarter

Narrowing the scope a bit, Skyworks stock also found itself on the list of best stocks to own in January, historically -- obviously not surprising given its first-quarter results from the past. According to White, going back 10 years, SWKS sports an average return of 6.5% in January, near the top for all S&P 500 stocks. What's more, the equity has ended the month higher seven times out of 10. 

At last check, Skyworks stock was up 1.4% to trade at $68.12. Moves of similar proportion would put the equity back above $72 by month's end, and near $85 by the end of the quarter. This $85 level coincides with the pre-bear gap levels from early November. The chip stock fell to a roughly two-and-a-half year low of $62.71 on Dec. 24, and has been ushered lower by its descending 30-day moving average since October.

Daily Stock Chart SWKS

In the options pits, the security's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.66, which ranks at an annual low. In other words, options traders seem relatively optimistic, with data showing a much higher-than-normal preference for near-term calls over puts.

For those going that route, premium on short-term SWKS options are pricing in extremely elevated volatility expectations, per its 30-day at-the-money (ATM) implied volatility (IV), which currently sits at 45.5% -- in the 98th annual percentile.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI