Quick Win by the Algorithm: Skyworks Solutions Rises Mightily

Quick Win by the Algorithm

On July 26th, 2016, the I Know First algorithm issued a one year forecast for Skyworks Solutions Inc.(NASDAQ:SWKS), with a signal of 1381.24 and a predictability ratio of 0.1. As a result, in accordance with the forecast, company’s stock produced a return of 65.28% over this period, solidifying another quick win by the I Know First algorithm.

quick win

Skyworks Solutions, Inc. is an American semiconductor company headquartered in Woburn, Massachusetts. Skyworks manufactures semiconductors for use in radio frequency (RF) and mobile communications systems. Its products include power amplifiers, front-end modules and RF products for handsets and wireless infrastructure equipment. The company’s portfolio includes amplifiers, receivers, circulators,  detectors, isolators, lighting and display solutions, modulators and power management devices.

quick win

Skyworks Solutions, a supplier for Apple, has performed very well in the last year. One reason the stock rose was anticipation for Q1 2017 earnings. The stock was trading at $78.46 on January 19th, the day before the announcement, but rose to $88.67 the next day, as SWKS reported earnings of $1.61 per share on revenue of $914 million versus the sell-side consensus of $1.58 per share and $902 million.

After the huge spike, SWKS generally enjoyed steady growth, peaking at $111.01. The company increased its sales growth by 19.8% since the last report, which is attractive. The sales growth rate for a stock is a measure of how the stock’s sales per share (SPS) has grown over a specific period of time. It tells an investor how quickly a company is increasing its revenues. The sales growth rate helps investors determine how strong the overall growth-orientation is for a stock or portfolio.

Current I Know First subscribers received this bullish forecast on SWKS on July 26th, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.