Skyworks Solutions Outlook - Technical Weakness and Mixed Analyst Signals

Skyworks Solutions Outlook - Technical Weakness and Mixed Analyst Signals

Market Snapshot

Headline Takeaway: Skyworks Solutions (SWKS) is showing technical weakness with an internal diagnostic score of 2.06, suggesting investors may want to avoid the stock for now. The stock has fallen -1.47% recently, while analyst sentiment remains mixed.

News Highlights

1. ETF Outflows Signal Sector Worry: The US Semiconductors ETF SOXX experienced a massive $750 million net outflow in May 2025, reflecting growing investor concern about the sector's near-term prospects. This could indirectly affect Skyworks Solutions as part of the broader semiconductor market.

2. Japan-U.S. Cooperation on Semiconductors: Japanese officials are proposing new cooperation with the U.S. on rare earths and semiconductors, potentially affecting supply chains and trade balances. This could bring structural benefits in the long run but may not offer immediate relief for stocks like Skyworks Solutions.

3. McKinsey on Tariffs and Semiconductor Supply Chains: A recent McKinsey report suggests that U.S. tariffs and the resulting trade dynamics could significantly impact the semiconductor industry. Skyworks, as a key player, may face added pressure if supply chain costs rise.

Analyst Views & Fundamentals

Skyworks Solutions faces a simple average rating of 2.33 and a performance-weighted rating of 1.17, reflecting a generally bearish stance from analysts. The ratings are inconsistent, with three institutions providing varied guidance over the past 20 days. The current price fall aligns with these weighted expectations, indicating pessimism in the market.

• EV/EBIT: 108.80 – this valuation metric is positive with an internal diagnostic score of 1.00.
• Gross Profit Margin (GPM): 41.08% – relatively healthy, but scored 0.00 due to recent underperformance.
• Cash Flow from Operating Activities (CFOA): $0.05 per share – a decent indicator, with a model score of 3.00.
• Cash-to-Market Value Ratio (Cash-MV): 32.79% – a positive sign for liquidity, with an internal diagnostic score of 2.00.
• Net Profit Growth YoY: -44.36% – a major red flag, with an internal diagnostic score of 2.00.

The fundamentals show a mixed picture—while some metrics like EV/EBIT and CFOA are strong, the sharp decline in net profit growth and a low GPM score indicate a company under pressure.

Money-Flow Trends

Despite the bearish fundamental and technical signs, fund-flow data is positive, with an internal diagnostic score of 7.67. Money is flowing into the stock, with all categories showing positive inflows:

• Small Inflow Ratio: 50.36%
• Medium Inflow Ratio: 50.21%
• Large Inflow Ratio: 50.49%
• Extra-Large Inflow Ratio: 57.95%

This suggests that big-money investors and institutional players are still showing interest in Skyworks Solutions, possibly betting on a rebound or a long-term position. Retail investors are also participating, indicating a broader but cautious market mood.

Key Technical Signals

Technically, Skyworks Solutions is in a weak position, with an internal diagnostic score of 2.06. The technical analysis highlights 4 bearish indicators and 0 bullish ones, reinforcing a sell bias:

• MACD Death Cross: Biased bearish with an internal diagnostic score of 1.00.
• Ex-Dividend Date: Biased bearish with an internal diagnostic score of 1.00.
• Dividend Record Date: Biased bearish with an internal diagnostic score of 1.00.
• Bullish Engulfing: Biased bearish with an internal diagnostic score of 1.00.
• WR Overbought: Neutral rise with a slightly better score of 6.28.

In the recent five days, key bearish signals were seen on August 25, September 2, and August 27. The MACD Death Cross and multiple dividend-related signals have contributed to a strong downward trend. Momentum is weak, and the overall trend suggests avoiding the stock unless a strong rebound is confirmed.

Conclusion

Actionable Takeaway: Given the weak technical profile and mixed analyst sentiment, investors may want to consider waiting for a pull-back or clearer signs of a recovery before taking a position in Skyworks Solutions. While fundamentals are mixed and inflows are positive, the current technical environment does not favor new buyers. Watch for earnings updates and any sector-wide developments that may provide a clearer direction in the near term.