Skyworks Solutions Outlook - Bearish Technicals and Mixed Analyst Sentiment

Market Snapshot

Takeaway: Skyworks Solutions (SWKS.O) is in a weak technical position with 4 bearish signals and zero bullish ones, and while fundamentals are mixed, recent fund flows suggest short-term positive attention.

News Highlights

• McKinsey Report on Semiconductors and Tariffs: New research highlights growing uncertainty in the semiconductor supply chain due to U.S. tariff policies, which could affect Skyworks' operations as a key player in the sector.
• ETF Outflows in the Sector: The US Semiconductors ETF (SOXX) saw a net outflow of $750 million in May 2025, signaling investor caution in the sector. This could weigh on Skyworks' share price if broader sentiment remains bearish.
• Japan-U.S. Semiconductor Cooperation: Japan is proposing greater cooperation with the U.S. on rare earths and semiconductors. If successful, this could reduce dependency on China and open new opportunities for U.S. firms like Skyworks.

Analyst Views & Fundamentals

The analyst consensus on Skyworks Solutions shows a simple average rating score of 2.33 and a performance-weighted rating of 1.17. These scores reflect a generally bearish outlook, with significant dispersion among the three active institutions. Citigroup and Susquehanna both rate the stock as "Underperform," while UBS rates it as "Neutral."

The current stock price is falling (-0.64%), and the weighted expectations of analysts align with the downtrend, indicating that expectations are pessimistic.

Key fundamental factors include:

• EV/EBIT = 108.80 (internal diagnostic score: 1)
• Net cash flow from operating activities per share (YoY growth rate %) = -93.11% (internal diagnostic score: 2)
• Net profit attributable to parent company shareholders / Net profit (%) = 100.00% (internal diagnostic score: 2)
• Total profit (YoY growth rate %) = -34.14% (internal diagnostic score: 2)
• Net cash flow from operating activities (YoY growth rate %) = -26.84% (internal diagnostic score: 2)
• Cost of sales ratio (%) = 58.77% (internal diagnostic score: 2)

These mixed fundamentals suggest that while some operational metrics are stable or improving, others show significant deterioration, particularly in cash flow and profitability growth.

Money-Flow Trends

Despite mixed fundamentals, fund-flow data shows a positive overall trend for Skyworks Solutions, with 75.6% of the inflow coming from retail (Small), and institutional (Extra-large and Large) flows showing mixed signals. The overall inflow ratio stands at 54.51%, indicating that market participants are still cautiously optimistic about the stock.

The block inflow ratio is 55.13%, suggesting that larger investors are also participating in the inflow, even as large funds show a negative trend. This could be a sign that the market is testing the stock for potential reversal or consolidation.

Key Technical Signals

The technical outlook for Skyworks Solutions is clearly bearish, with 4 out of 5 analyzed indicators being negative and zero bullish signals. The internal technical score is 2.06, which is considered weak, and the recommendation is to avoid the stock at this time.

Key recent technical signals include:

• MACD Death Cross (internal diagnostic score: 1) — a strong bearish signal indicating a weakening trend.
• Ex-Dividend Date and Dividend Record Date (both with score: 1) — historically these events have led to price declines.
• Bullish Engulfing (score: 1) — ironically labeled bullish in name but historically has led to bearish outcomes.
• WR Overbought (score: 6.28) — a relatively neutral signal with a slightly positive edge.

From September 2nd to August 27th, key technical events have included the MACD Death Cross and the Hanging Man pattern on September 8th, both reinforcing the bearish narrative.

Conclusion

Given the weak technical profile (score: 2.06), mixed fundamentals, and disagreeing analyst ratings, Skyworks Solutions is currently in a vulnerable position. Investors should consider avoiding new long positions and watch for a potential pullback before making any decisions. The current price trend (-0.64%) and bearish technical indicators suggest caution is warranted.