Trade-Ideas: Skyworks Solutions (SWKS) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Skyworks Solutions ( SWKS) as a post-market leader 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 $80.8 million.
  • SWKS is up 3.2% today from today's close.

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More details on SWKS:

Skyworks Solutions, Inc., together with its subsidiaries, provides analog semiconductors worldwide. SWKS has a PE ratio of 19.9. Currently there are 10 analysts that rate Skyworks Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Skyworks Solutions has been 2.7 million shares per day over the past 30 days. Skyworks has a market cap of $5.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.83 and a short float of 3.1% with 2.16 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Skyworks Solutions as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 13.3%. 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 4.47, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 37.50% and other important driving factors, this stock has surged by 31.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SWKS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SKYWORKS SOLUTIONS INC has improved earnings per share by 37.5% 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 $1.44 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.56 versus $1.44).
  • 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 36.7% when compared to the same quarter one year prior, rising from $61.60 million to $84.20 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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