A trio of semiconductor stocks — NVIDIA (NVDA), Qorvo (QRVO), and Skyworks (SWKS) — earn...
In the Chips: Cirrus and Skyworks
05/23/2017 2:52 am EST
Chips stocks are still on fire, and both of these stocks are tracing out patterns that suggest they may be getting ready for another push into new-high territory.
No, it has not managed to break through $65 in a convincing manner yet, but, as you can see in the chart to the left, Cirrus’ stock has been bumping up against that level for a little over a month now.
And though there are never any guarantees, based on what is going on with the rest of the sector, I would not be at all surprised if we see the stock start to push into new all-time high territory as the start of another leg up sometime in the next few weeks.
For its fiscal 2017, Cirrus reported revenues of $1.5 billion and net income of $261.2 million, or $3.92 per share, as compared to revenues of just under $1.2 billion and net income of $123.6 million, or $1.87 per share, in the prior year. CRUS is a strong buy under $60 and a buy under $68.
As you can see in the chart below, Skyworks is continuing to trace exactly the sort of slow-but-steady uptrend we like to see if we are looking for confirmation that we’re in a bull market.
In our view, technically, we are probably not close to the end of it just yet — in which case, the stock would be “going parabolic” rather than trending higher in a linear fashion.
For its second quarter, Skyworks generated revenues of $851.7 million and net incomes of $224.9 million, or $1.20 per share, as compared to revenues of $775.1 million and net income of 208.1 million, or $1.08 per share, in the prior year’s second quarter.
Provided you’re scaling-in to an investment position over time, Skyworks remains a strong buy under $98 and a buy under $105 per share.
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