Skyworks Solutions continues its bullish trend in order to test new highest level.
The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are willing to pay a high price for the stock. Sales and profitability are increasing. Revenues should approach USD 2.5 billion by 2015, +30% from last year level, while net margin should reach 20% over the same period. Moreover, the consensus revised upward revenue and EPS estimates for the coming years and that let see a great potential for the security on the stock market. When announcing Q2 2014 results, the company exceeded guidance on all key numbers and is expected to outpace the broader semiconductor industry.
Technically, the security shows a bullish configuration on all time scales as prices are supported by increasing moving averages. After the recent upward gap, due to the exceeding of guidance, the stock recently crossed another resistance level and the next one should not stop prices progression. Indeed, the company’s activities are in a good momentum as analysts keep revising upward their estimates.
In consequence, investors can take a long position in Skyworks Solutions at the current price with a first target price at USD 51.8. This level is the long term resistance. Nonetheless, a stop loss will be set under the short term support at USD 42.4.
Skyworks Solutions, Inc. specializes in the development, sales and marketing of high-performance, mixed signal semi-conductors. The products are designed for use in the following sectors: consumer electronics, IT, mobile communication systems and network infrastructures. They also provide solutions for automotive, RFID, industrial, medical, military and aerospatial applications to name but a few. The group offers amplifiers, attenuators, detectors, diodes, directional couplers, modules, radio frequency subsystems, isolators, modulators, optocouplers, optoisolators, phase shifters, switches and multiplexers, solutions for food management, etc.
At the end of September 2023, Skyworks Solutions, Inc. had 6 manufacturing sites located in the United States (2), Mexico (2), Japan and Singapore.
Net sales are distributed geographically as follows: the United States (75.5%), China (7.5%), Taiwan (7.2%), South Korea (4.2%), Asia/Pacific (1.3%) and Europe/Middle East/Africa (4.3%).
SKYWORKS SOLUTIONS, INC. 
