4-Star Stocks Poised to Pop: Skyworks

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, handset chip maker Skyworks Solutions (Nasdaq: SWKS  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Skyworks' business and see what CAPS investors are saying about the stock right now.

Skyworks facts

Headquarters (founded) Woburn, Mass. (1962)
Market Cap $3.84 billion
Industry Semiconductors
Trailing-12-Month Revenue $986.7 million
Management

CEO David Aldrich (since 2000)

CFO Donald Palette (since 2007)

Return on Equity (average, past 3 years) 10.8%
Cash/Debt $383.8 million / $74.4 million
Competitors

Anadigics (Nasdaq: ANAD  )

RF Micro Devices (Nasdaq: RFMD  )

TriQuint Semiconductor (Nasdaq: TQNT  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94% of the 529 members who have rated Skyworks believe the stock will outperform the S&P 500 going forward. These bulls include JJBull1 and HarryInBC.

This past summer, JJBull1 tapped Skyworks as a potent play on the iPhone's popularity: "Huge demand by [Apple (Nasdaq: AAPL  ) ] and others, people can be broke and unemployed, but everyone has a cell phone."

Of course, Apple isn't the only wireless handset giant that uses Skyworks' energy-efficient chips. Nokia, Research In Motion, and Motorola are also among the whole host of technology blue chips that Skyworks sports as customers. And although Skyworks faces increasingly fierce price pressure, its trailing-12 month operating margin (15%) easily tops that of close rivals RF Micro (9.1%), TriQuint (8.5%), and Anadigics (-14.5%).

CAPS member HarryInBC elaborates:

In simple terms, Skyworks supplies the "guts" for everything from cell phones, to automotive computers, to satellite communication and much more. They are committed to green practices. Headquartered in the USA they also design, manufacture and sell around the world. ... There is a great demand for Skyworks' expertise, and their sales should continue to grow.

What do you think about Skyworks, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick, and the Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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