Why It Is Time to Buy Chip Supplier Skyworks Solutions Right Now

Over the past 12 months, wireless handset chip supplier Skyworks Solutions' (SWKS) fortunes have mirrored those of its primary customers, Apple and Samsung Elecronics.

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

Skyworks Solutions' stock hasn't performed well.

The reliance on Apple and Samsung Electronics been a major problem over the past couple years for Skyworks Solutions. The two mobile phone manufacturers' businesses have declined along with demand for smartphones. 

That said, Skyworks Solutions has consistently either delivered an in-line performance or beaten expectations, and it is taking steps to diversify.

Vetr, which provides crowd-sourced ratings of companies, upgraded Skyworks Solutions on Tuesday to strong buy from buy.

A full 21 equity analyst researchers have a buy rating on the stock. 

Shares were about flat in Wednesday trading. Now is the perfect opportunity to grab shares at a bargain.

Although Skyworks Solutions' recent light guidance may have raised concerns on Wall Street, the company's projections look solid. Skyworks Solutions' first-quarter guidance for earnings at $1.58 a share is ahead of analysts' expectations, as is its revenue guidance of $894 million to $911 million, which is above the consensus at $893 million.

Skyworks Solutions is working to reduce its inventory.

In fact, Skyworks boasts of a best-in-the-sector track record for delivering financial performance.

If you liked this article you might like

Does Skyworks Have a Breakout Solution?

Semiconductors Poised to Benefit From New Apple iPhones

Bumpy Ride for Tech Stocks After Apple Unveils iPhone 8, iPhone X

These Are the 27 Companies You Must Watch Ahead of Apple's Big Launch Event

A Stampede of Buying: Cramer's 'Mad Money' Recap (Monday 9/11/17)