What investors need to know about this semiconductor stock
Semiconductor stock Skyworks Solutions, Inc. (NASDAQ:SWKS) is up 1.8% to trade at $127.07 today. SWKS is roughly one month removed from a March 14 two-year low of $118.99. Now down 21% in 2022, is the equity a viable bounce-back candidate for investors looking to buy the dip?
The chip company still provides mixed signals in terms of valuation metrics. It has an attractive forward price-earnings ratio of 10.58 but an inflated price-sales ratio of 3.99. The semiconductor name has also struggled to generate consistent growth, reporting consecutive years of top and bottom-line declines between fiscal 2018 and 2020. In total SWKS' revenues decreased 13% and net income decreased 11% during that period.
For fiscal 2021, the semiconductor company had a strong recovery, growing revenues 52% and net income 84%. Skyworks is also expected to report 10.1% earnings growth and 10.9% revenue growth for fiscal 2022. In addition, the American chip manufacturer is estimated to increase earnings another 11% and revenues another 8.3% for fiscal 2023, signaling a more consistent projected growth rate.
The semiconductor stock offers a modest dividend yield of 1.83% with a forward dividend of $2.24. Overall, Skyworks stock could have decent upside potential as a turn-around play for long-term investors.