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SWKS stock forecast: Analysts estimate a 26% upside for Skyworks Solutions

SWKS stock forecast: Analysts estimate a 26% upside for Skyworks Solutions
Jordan
Major
3 weeks ago
3 mins read

Skyworks Solutions Inc (NASDAQ: SWKS) finished −$1.56 (0.85%) down when trading halted on the stock market on Tuesday and is down a total of -$5.42 (-2.90%) over the last five trading days.

Nevertheless, the firm is expected to generate $1.3 billion in revenue for the current fiscal quarter, according to Zacks Investment Research. In comparison, during the same period last year, Skyworks Solutions recorded $956.8 million in sales – meaning this would be a 35.9% increase from the previous year if it meets the forecast. 

The long-term trend in the stock market looks positive according to indications, although the short-term trend at the moment appears to be neutral.

SWKS has traded in a broad range of $173.30 – $186.97 during the past month, and the price has recently been stabilizing in the center of this range, which may provide a nice entry point for those looking to invest, but also there is some resistance found above.

SWKS 20-50-200 SMA lines chart. Source. Finviz data. See more stocks here.

For example, the first area of resistance ranges from $181.77 to $186.28; this zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. Conversely, support at $179.71 from a trend line in the daily time frame is also clear.

Recently, we’ve seen a decrease in volatility and stabilization of pricing, which is encouraging to observe for a good setup opportunity. As mentioned, a support zone of $179.71 exists below the present price; therefore, traders might look to put a stop order below this zone.

Wall Street analysts predict 

Eighteen Wall Street trading analysts made 12-month price forecasts based on Skyworks Solutions’ performance during the past three months. Its average price goal is $228.50 with a high projection of $380 and a low forecast of $182. The forecasted average price is a 25.93% increase over the previous price of $181.45.

SWKS analysts’ price target. Source: TipRanks.com

Based on the judgment of the last three months, thirteen TipRanks experts have recommended SWKS as a “Buy,” while five analysts have reaffirmed their “Hold” recommendations. Interestingly none of them recommend “Sell.” Overall the analysts consider Skyworks Solutions a moderate buy, with an average price target increase of 25.93% from its current price of $181.45.

Dividend and Earnings

Revenue for the third fiscal quarter of 2021 was $1.116 billion, up 52% year over year, and it beat consensus market analysts estimates, per the company’s earnings.

Liam K. Griffin, chairman, CEO, and president of Skyworks Solutions, on the release of the earnings, declared:

 “Looking ahead, we expect continued momentum as we execute on strong design wins with our mobile and broad markets customers.”

In addition to the earnings report, the company recently handed out its quarterly dividend, which was paid on Tuesday, September 7th. A $0.56 per share cash dividend was paid to shareholders of record on August 17th, representing a 12% increase from the prior quarterly dividend of $0.50 per share.

Skyworks Solutions designs and manufactures unique semiconductor solutions for mobile and broad markets, which is critical to the future of the 5G industry. For instance, Skyworks Solutions makes radio frequency chips for mobile, wireless infrastructure, home automation, and automotive applications.

As a result, we have placed the firm on our best 5G stocks list due to its solid technicals and assessments of experienced trading experts.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.