My Top Growth Stock for 2020
Skyworks Solutions (NASDAQ:SWKS) is all set to end 2019 on a high note. The chipmaker has beaten the broader market by a fair margin this year, which would seem surprising at first given that its top and bottom lines have headed in the wrong direction.
Skyworks’ reliance on Huawei and the broader weakness in the smartphone industry have hurt the chipmaker big time this year. Still, investors have remained upbeat, and the stock has soared in anticipation of a major turnaround next year thanks to 5G (fifth-generation) wireless networks.
Wall Street carries a similar view. Bank of America recently upgraded Skyworks stock from underperform to buy and slapped a $122 price target on it. The investment bank believes that the chipmaker could step on the gas in 2020 as 5G gains critical mass. And don’t be surprised if that’s indeed the case — Skyworks could be one of the biggest beneficiaries of 5G in 2020. Here’s why.
The smartphone business will witness a major turnaround
Smartphones are Skyworks’ bread and butter. According to Bank of America, the company gets 51% of its total revenue by supplying chips to Apple (NASDAQ:AAPL). Not surprisingly, Skyworks’ financial performance has taken a hit this year as sales of Apple’s iPhone have declined.
But the good news for Skyworks is that … Continue reading at The Motley Fool