SWKS has lost significant value this month
Shares of semiconductor company Skyworks Solutions (SWKS) fell 4.8% on May 17 to close trading at $70.41. The stock is currently trading 17% above its 52-week low of $60.12 and 32.4% below its 52-week high of $104.20.
Semiconductor stocks have had a bad month after President Donald Trump’s tariff tweet and the ban on business with Huawei. Skyworks generates 25.4% of its sales from China. Skyworks is also an Apple chip supplier, so lukewarm smartphone sales have also affected its stock recently. Skyworks stock has fallen more than 20% this month and 15% in the last week.
Peer semiconductor stocks Western Digital (WDC), Micron (MU), Analog Devices (ADI), and Qorvo (QRVO) have fallen 12.7%,14.3%, 13.3%, and 15.5%, respectively this month. The VanEck Vectors Semiconductor ETF and the iShares PHLX Semiconductor ETF (SOXX) have fallen 9.3% and 9.8%, respectively, in May so far.
We identified Skyworks as an overvalued stock last week.
Skyworks stock is trading at a discount to the average estimate
Of the 28 analysts tracking Skyworks, 22 have given it “buys,” and five have given it “holds.” It’s received one “sell” recommendation. Wall Street has given the stock an average 12-month target price of $99.50, which indicates that it’s trading at a discount of 41% to the average target estimate.