We recently published a list of Jim Cramer’s Latest Stock Portfolio: Top 10 Recommendations. Since Skyworks Solutions (NASDAQ:SWKS) ranks 7th on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the concept of “suitability” of stocks in investing, which emphasizes the importance of picking individual stocks based on your personal context, circumstances and life goals instead of short-term market movements. Cramer recalled his days at the Harvard Law School and how he used to run to the library to read research reports on companies to dig out information on quality stocks on a week-to-week basis. When Cramer joined Goldman Sachs, an “executive” at the firm introduced him to the concept of suitability, advising him never to recommend stocks to people without knowing what they want out of investing. According to Cramer, that “best semiconductor stock” might not be good for all individuals and therefore it’s necessary to know the “tolerance” and risk appetite of investors.
Answering a question during the program, Cramer said technical analysis, including paying attention to RSI values, is “incredibly” important to him and he does not like to buy stocks if “their chart is bad.”
For this program we watched several latest programs of Jim Cramer and picked 10 stocks he talked about recently. These include stocks he’s bullish on as well as the ones he recommends selling. We have analyzed each stock in detail to see its fundamentals and know what the Wall Street believes about it. We have also mentioned hedge fund sentiment with each company. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Skyworks Solutions (NASDAQ:SWKS)
Number of Hedge Fund Investors: 31
A caller recently asked Jim Cramer whether he should hold on to Skyworks Solutions (NASDAQ:SWKS). Cramer said “yes.”
“Actually I’d buy them.”
Cramer said Skyworks Solutions (NASDAQ:SWKS) CEO Liam Griffin is “terrific” and the stock could have a “big move” amid orders from Apple.
Skyworks Solutions (NASDAQ:SWKS) makes analog and mixed-signal chips for Apple’s iPhones. Apple accounts for about 65% of the company’s revenue. Wall Street is also bullish on Skyworks Solutions (NASDAQ:SWKS) because of the Apple factor. Last month B. Riley increased its price target on Skyworks Solutions (NASDAQ:SWKS) to $130 from $96 and said the stock has upside because Apple is a major customer of the company.
However, Skyworks Solutions (NASDAQ:SWKS) shares fell after the company gave weaker guidance in April driven by soft mobile revenue. Piper Sandler analysts Harsh Kumar and Robert Aguanno said in a note that these mobile headwinds are “short term in nature.”
Cowen analyst Matthew Ramsey downgraded Skyworks Solutions (NASDAQ:SWKS) to Hold from Buy and also cut its price target to $90 from $125.
“We remain encouraged at Skyworks’ efforts to strategically position the business following a difficult recent macro environment, yet see an approximately 10% socket loss that may or may not be temporary as too much to overcome.”
Skyworks Solutions’s (NASDAQ:SWKS) forward P/E is 17.07, lower than the sector median of 24.
Overall, Skyworks Solutions (NASDAQ:SWKS) ranks 7th on Insider Monkey’s list titled Jim Cramer’s Latest Stock Portfolio: Top 10 Recommendations. While we acknowledge the potential of Skyworks Solutions (NASDAQ:SWKS), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Skyworks Solutions (NASDAQ:SWKS) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
