This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Buys (Yes, Buys) at 52-Week Highs


SWKS Chart

Skyworks Solutions (SWKS) is concentrated in designing, developing, manufacturing and marketing analog and mixed signal semiconductors. The company has an $8 billion market cap and trades about 3.5 million shares a day.

52 Week Range: $20.62 to $44.17

Beta: 1.62

Price to Book: 3.53

Compared to industry peers, Anadigics (ANAD), RF Micro Devices (RFMD), and TriQuint Semiconductor (TQNT), Skyworks Solutions is the highest rated by analysts. Skyworks Solutions has almost as many buy recommendations as the other three combined.

TriQuint Semiconductor's stock percentage rise beats Skyworks Solutions, but it's starting from a lower base price. Skyworks Solutions is about twice the valuation of TriQuint Semiconductor, and with $2 billion in revenue compared to slightly less than $1 billion, the valuations correlate neatly.

Skyworks began paying an annualized 44 cent dividend this month for an effective yield of 1.1%. Rising dividends (in this case the start of one) is a catalyst for dividend funds and investors to push the share price even higher as they become interested in the bull thesis. The dividend yield is smaller than Apple (AAPL), but this company doesn't need to borrow to pay it. Skyworks is also essentially debt-free.

At the same time, because you have to go back until 2001 to find a shareholder that bought at a higher price, virtually every investor who bought is happy right now. There's no one waiting for the price to move higher "just a little more" so they can get out at even, creating strong resistance levels.

Currently, the short interest based on the float is inconsequential and not a significant concern. Short interest is 2.7%.

SWKS Revenue (TTM) Chart

 

4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MU $29.59 1.30%
UIHC $20.40 -2.90%
AAPL $132.73 1.90%
FB $82.12 0.72%
GOOG $554.30 -1.90%

Markets

DOW 18,096.49 +16.35 0.09%
S&P 500 2,118.71 +1.02 0.05%
NASDAQ 5,086.8730 -5.2120 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs