Skyworks Solutions (SWKS): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Skyworks Solutions as such a stock due to the following factors:
- SWKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.0 million.
- SWKS has traded 2.5 million shares today.
- SWKS is trading at 14.02 times the normal volume for the stock at this time of day.
- SWKS is trading at a new low 11.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on SWKS:
Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide. The stock currently has a dividend yield of 1.5%. SWKS has a PE ratio of 14. Currently there are 14 analysts that rate Skyworks Solutions a buy, 2 analysts rate it a sell, and 4 rate it a hold.
The average volume for Skyworks Solutions has been 2.8 million shares per day over the past 30 days. Skyworks has a market cap of $13.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.74 and a short float of 5.7% with 3.53 days to cover. Shares are down 7.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Skyworks Solutions as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- SKYWORKS SOLUTIONS INC has improved earnings per share by 27.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKYWORKS SOLUTIONS INC increased its bottom line by earning $4.10 versus $2.37 in the prior year. This year, the market expects an improvement in earnings ($5.48 versus $4.10).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 25.0% when compared to the same quarter one year prior, going from $166.50 million to $208.10 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SWKS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.28, which clearly demonstrates the ability to cover short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SKYWORKS SOLUTIONS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Skyworks Solutions Ratings Report.
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