Stock Analysis | Skyworks Solutions Outlook - A Weak Technical Profile Amid Mixed Analyst and Fund-Flow Signals

Market Snapshot

Headline Takeaway: The technical outlook for Skyworks Solutions (SWKS) is weak, with bearish indicators dominating and an internal diagnostic score of 2.06 suggesting caution or avoidance.

News Highlights

Recent industry developments point to ongoing challenges and opportunities for semiconductor players like Skyworks. Here are two key stories:

• McKinsey Weighs In on US Tariff Impact - A new analysis from McKinsey explores how US tariffs are reshaping semiconductor supply chains. The regulatory uncertainty could weigh on companies dependent on global manufacturing ties, including Skyworks.
• SOXX ETF Sees $750M Outflow - The US Semiconductors ETF SOXX experienced a significant outflow of $750 million in May 2025, signaling broader investor caution in the sector. This could indirectly affect Skyworks as a constituent of the ETF.

Analyst Views & Fundamentals

Analysts remain divided on Skyworks, with a simple average rating of 2.33 and a performance-weighted rating of 1.17. This dispersion suggests no strong consensus, and the market is clearly bearish, with a current price drop of -2.70%.

Here's how the fundamental factors stack up, along with their internal diagnostic scores (0-10):

• EV/EBIT: 108.80 – Internal diagnostic score: 1 – High valuations are a red flag in a down market.
• Net profit attributable to parent company shareholders / Net profit: 100.0% – Internal diagnostic score: 2 – Indicates strong alignment, but not enough to counteract broader bearishness.
• Net profit attributable to parent company shareholders (YoY growth rate): -44.36% – Internal diagnostic score: 2 – A sharp decline in profitability raises concerns.
• Interest coverage ratio: 22.53% – Internal diagnostic score: 1 – Suggests manageable debt, but not a strength in the current environment.
• Cash-MV: 0.33 – Internal diagnostic score: 2 – Indicates some liquidity cushion, but not a strong market position.

Money-Flow Trends

There’s a clear divergence between large-scale investors and retail activity. Large and extra-large institutional flows remain positive, with inflow ratios of 51.72% and 61.09%, respectively. Meanwhile, retail inflows are also positive, with inflow ratios at 50.70% and 50.49% for small and medium investors, respectively. The overall inflow ratio stands at 58.36%, suggesting that while the broader market is cautious, there is still some inflow interest in Skyworks.

Key Technical Signals

The technical outlook is very bearish, with no bullish indicators and four bearish ones. The internal diagnostic score is just 2.06, and the recommendation is to avoid the stock for now.

• MACD Death Cross – Internal diagnostic score: 1 – A strong bearish signal historically linked to sharp declines.
• Ex-Dividend Date – Internal diagnostic score: 1 – Typically associated with price declines.
• Bullish Engulfing – Internal diagnostic score: 1 – Paradoxically bearish here, indicating failed recovery attempts.
• WR Overbought – Internal diagnostic score: 6.28 – Neutral to mildly bearish, suggesting exhaustion in the current price level.
• Dividend Record Date – Internal diagnostic score: 1 – Again, bearish historically due to short-term selling pressure.

Recent patterns include:

• August 22, 2025: WR Overbought
• August 26, 2025: Ex-Dividend and Dividend Record Dates
• September 2, 2025: MACD Death Cross
• August 27, 2025: Bullish Engulfing (failed)

Conclusion

While Skyworks Solutions has seen some positive money flows and mixed analyst ratings, the technical picture is unimpressive, with multiple bearish signals and no strong support. Investors should consider avoiding new positions at this time or closely monitoring for signs of reversal. A pullback or positive earnings surprise could provide a better entry point, but for now, the risk-reward profile tilts to the downside.