Skyworks Solutions Outlook - A Bearish Technical Picture Amid Mixed Fundamentals and Weak Analyst Confidence

Market Snapshot

Takeaway: Skyworks Solutions (SWKS) is showing a weak technical outlook, with bearish indicators dominating and analysts expressing mixed and generally underperforming sentiment. The fundamentals offer a moderate score but with significant room for improvement.

News Highlights

Recent news highlights show the semiconductor sector in the spotlight due to global trade and sustainability concerns:

• McKinsey on US Tariffs and Chip Supply Chains: A new McKinsey report explores the potential impacts of US tariffs on the semiconductor industry, pointing to a turbulent regulatory landscape that could affect global supply chains and manufacturing strategies. The ruling that allows tariffs to remain in place for now adds uncertainty.
• Japan-U.S. Cooperation on Rare Earths and Semiconductors: Japan plans to propose greater cooperation with the U.S. in rare earths and semiconductor manufacturing, aiming to counter China's dominance in the sector. This could lead to long-term policy shifts in supply chain security and trade dynamics.
• SOXX ETF Sees $750M Net Outflow in May: The US Semiconductors ETF (SOXX) experienced significant outflows, possibly signaling investor concerns about the sector’s valuation and growth potential, especially amid rising interest rates and macroeconomic headwinds.

Analyst Views & Fundamentals

Analyst sentiment for SWKS is mixed, with no strong consensus emerging:

• Average Rating Score (Simple Mean): 2.33
• Weighted Rating Score (Performance-Weighted): 1.17
• Rating Consistency: Dispersed. Analysts from Susquehanna, UBS, and Citigroup gave ratings of "Underperform" and "Neutral," indicating no strong alignment. UBS has a better historical performance than the others.
• Price Trend Alignment: The current price of SWKS is in a slight decline (-0.64%), matching the generally bearish and cautious market expectations.

On the fundamental side, the model assigns SWKS an internal diagnostic score of 3.83, indicating modest strength. Key fundamental factor values include:

• Net Cash Flow from Operating Activities per Share (YoY Growth Rate %): -93.11%
• Net Profit Attributable to Parent Company Shareholders / Net Profit (%): 100.00%
• EV/EBIT: 108.80%
• Net Profit Attributable to Parent Company Shareholders (YoY Growth Rate %): -44.36%
• Interest Coverage Ratio (EBIT / Interest Expense) (%): 22.53%

Money-Flow Trends

SWKS is seeing positive money-flow trends, particularly among larger investors:

• Overall Inflow Ratio: 0.545
• Block Inflow Ratio: 0.551
• Fund Flow Score: 7.6 (good)

This data suggests that institutional and large investors are showing more confidence in SWKS than retail investors, despite the bearish technical signal. However, the Large_trend is negative, indicating caution from some larger players.

Key Technical Signals

Technically, the outlook for SWKS is weak, with bearish signals dominating and no bullish indicators present:

• MACD Death Cross: Internal diagnostic score: 1 — a bearish signal historically associated with price declines (avg. return: -4.28%).
• Dividend Record Date: Internal diagnostic score: 1 — historically linked to downward price pressure (avg. return: -1.73%).
• Ex-Dividend Date: Internal diagnostic score: 1 — also bearish, with similar performance.
• Bullish Engulfing: Internal diagnostic score: 1 — ironically bearish in this context, with an average return of -3.18%.
• WR Overbought: Internal diagnostic score: 6.28 — a neutral-to-bullish signal, but not enough to outweigh the bearish indicators.

Recent chart patterns (by date):

• 2025-08-26: Ex-Dividend Date, Dividend Record Date
• 2025-08-27: Bullish Engulfing
• 2025-09-02: MACD Death Cross
• 2025-09-08: Hanging Man

These patterns, especially the MACD Death Cross and the Hanging Man, reinforce the bearish bias. The technical score of 2.06 suggests caution, with a clear warning to avoid the stock unless a clear reversal occurs.

Conclusion

While the fundamentals of SWKS are not outright negative (scoring 3.83), the technical signals are very bearish (score 2.06), and analyst sentiment remains divided and underperforming. The recent money-flow data suggests some institutional interest, but the technical outlook is weak.

Actionable Takeaway: Consider avoiding Skyworks Solutions at this time or watching for a potential pull-back or breakout pattern to re-enter. Investors should monitor the upcoming earnings reports and any sector-specific news for possible turning points.