Is Now the Time to Buy the Pullback in Skyworks Stock?

SWKS is near its two-year lows from March

Apr 12, 2022 at 10:00 AM
facebook twitter linkedin


Semiconductor stock Skyworks Solutions, Inc. (NASDAQ:SWKS) is up 1.8% to trade at $127.07 today. SWKS is roughly one month removed from a March 14 two-year low of $118.99. Now down 21% in 2022, is the equity a viable bounce-back candidate for investors looking to buy the dip?

The chip company still provides mixed signals in terms of valuation metrics. It has an attractive forward price-earnings ratio of 10.58 but an inflated price-sales ratio of 3.99. The semiconductor name has also struggled to generate consistent growth, reporting consecutive years of top and bottom-line declines between fiscal 2018 and 2020. In total SWKS' revenues decreased 13% and net income decreased 11% during that period.

For fiscal 2021, the semiconductor company had a strong recovery, growing revenues 52% and net income 84%. Skyworks is also expected to report 10.1% earnings growth and 10.9% revenue growth for fiscal 2022. In addition, the American chip manufacturer is estimated to increase earnings another 11% and revenues another 8.3% for fiscal 2023, signaling a more consistent projected growth rate.

The semiconductor stock offers a modest dividend yield of 1.83% with a forward dividend of $2.24. Overall, Skyworks stock could have decent upside potential as a turn-around play for long-term investors.

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners