#4 - Skyworks Solutions (NASADAQ:SWKS)
Skyworks Solutions (NASDAQ: SWKS) - The story of Skyworks Solutions comes down to China. Skyworks generates approximately 40% of its revenue from Apple. However, it generates 64% of its revenue by supplying radio frequency (RF) chips for mobile devices, largely because it has aggressively sought to diversify its client base to capture this market. Skyworks Solutions now has their chips in China’s three largest smartphone makers. The largest, Huawei currently surpasses Apple’s sales in China. So why is this an Apple story? Because Apple is forecasting a significant demand for the iPhone in China. How much demand? Apple is anticipating a 170% increase in sales inside China. This should put SWKS in a great position to benefit from their existing client base in China, but also from a boost from additional iPhone sales. SWKS also is seeing growing revenue from its non-smartphone applications. Its “broad markets” category generated 26% of their $256 million revenue in the category. Their technology is now finding a home in smart homes and home security systems. The stock’s current P/E ratio is 14.23 and the stock is trading around $90 which is just above its 52-week low of $87.08.
About
- Current Price
- 0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
