Stock Analysis | Skyworks Solutions Outlook - Weak Technicals and Mixed Analysts

Market Snapshot

Takeaway: Skyworks Solutions (SWKS) faces a weak technical outlook with bearish signals dominating, though recent news hints at broader semiconductor industry dynamics. Stance: We suggest caution and potentially avoiding the stock for now.

News Highlights

Recent headlines highlight ongoing developments in the semiconductor sector. On May 30, McKinsey released research on U.S. tariff policies and their likely impact on the industry, signaling uncertainty. Japan also announced plans to enhance cooperation with the U.S. in rare earths and semiconductors, potentially affecting global supply chains. Additionally, Lansforsakringar Fondforvaltning AB publ made a significant $11.77 million investment in NXP Semiconductors, reflecting investor interest in the sector. While these items don’t directly impact Skyworks, they highlight a competitive and policy-driven environment for semiconductor firms.

Analyst Views & Fundamentals

Analyst sentiment is mixed, with a simple average rating of 2.33 and a weighted performance-based rating of 1.17, both indicating pessimism. The ratings are not aligned with the recent price trend, which has risen 0.92% despite the low-weighted expectations.

• Net profit attributable to parent company shareholders / Net profit: 100.0% (score: 2)
• EV/EBIT: 108.80 (score: 2)
• Cash-MV: 32.78% (score: 2)
• Net cash flow from operating activities per share (YoY growth rate): -6.14% (score: 3)
• Interest coverage ratio: 22.53% (score: 1)
• GPOA: 4.97% (score: 3)
• Net cash flow from operating activities (YoY growth rate): -26.84% (score: 1)
• Total profit (YoY growth rate): -34.14% (score: 0)

These fundamentals indicate mixed performance, with some cash flow metrics scoring slightly better, but overall earnings and profit trends remain negative. The internal fundamental model score is 3.56, suggesting caution but not outright avoidance.

Money-Flow Trends

Big-money investors are showing a stronger interest in Skyworks compared to retail traders. The extra-large inflow ratio is 0.55 (vs. 0.49 for small traders), indicating institutional confidence. While both retail and big money flows are positive, the overall inflow ratio is 0.535, slightly favoring inflows. However, this must be weighed against weak technicals.

Key Technical Signals

The technical outlook for Skyworks is weak, with 3 bearish indicators and 0 bullish ones in the last five days. The technical model score is 2.38 (internal diagnostic score, 0-10), reinforcing the bearish bias.

Recent Indicator Activity:

• 2025-08-22: WR Overbought (score: 6.52)
• 2025-08-21: WR Overbought
• 2025-08-26: Ex-Dividend Date (score: 1), Dividend Record Date (score: 1)
• 2025-08-27: Bullish Engulfing (score: 1, ironically bearish)

Despite a few bullish-looking candlestick patterns, such as Bullish Engulfing, the technical signal scores suggest weak conviction. Key insights include:

• Weak market sentiment with a high risk of decline.
• Bearish signals dominate technical analysis (3 vs. 0).

Conclusion

Skyworks Solutions appears to be in a technically weak phase with more bearish indicators than bullish ones. While recent news hints at potential opportunities in the semiconductor sector, the fundamental and technical signals suggest a cautious approach. Consider waiting for a pull-back or clearer signs of strength before entering a position. For now, this stock may be best watched from the sidelines.