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2 Stocks Are Down Big From Their 52-Week Highs. Are These Buying Opportunities?

By Jose Najarro - May 3, 2021 at 11:00AM

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Skyworks and NIO just reported earnings, and their stock prices are down from their 52-week highs. Is it time to buy the dip?

I look at Skyworks Solutions (SWKS 3.00%) and NIO (NIO 3.84%) earnings in today's video. Here are three reasons these two stocks could be giving long-term investors a buying opportunity with their recent stock price dips.

Three reasons to add Skyworks to your watchlist:

  1. In its most recent quarter, the company reported 53% year-over-year revenue growth and over 50% margin from cash flow from operations.
  2. For its next quarter (Q3 FY21), Skyworks anticipates 49% year-over-year revenue growth and non-GAAP (adjusted) earnings per share (EPS) year-over-year growth of 70%.
  3. Skyworks has entered a definitive agreement to acquire the infrastructure and automotive businesses of Silicon Labs (SLAB -7.09%). The acquisition will diversify the company's revenue and make it less dependent on its mobile segments.

Three reasons to add NIO to your watchlist:

  1. NIO delivered 20,060 vehicles, an increase of 15.6% from the previous quarter, which was previously its best quarter. 
  2. The CEO and CFO commented that the supply chain is being affected by the chip shortage, and NIO expects to deliver 21,000 to 22,000 vehicles in the next quarter. Even with the shortage, it is still increasing its production of cars compared to both this current quarter and the same time last year.
  3. NIO reported vehicle margins of 21.2% for the quarter, an improvement from the previous quarter of 17.2%. The margin improvement is due to a higher take rate from its 100 kilowatt-hour (kWh) battery package and NIO Pilot.

Click the video below for my full thoughts. 

*Stock Prices used were the midday prices of April 30, 2021. The video was published on April 30, 2021. 



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Stocks Mentioned

Skyworks Solutions, Inc. Stock Quote
Skyworks Solutions, Inc.
SWKS
$93.85 (3.00%) $2.73
Nio Inc. Stock Quote
Nio Inc.
NIO
$22.18 (3.84%) $0.82
Silicon Laboratories Inc. Stock Quote
Silicon Laboratories Inc.
SLAB
$119.29 (-7.09%) $-9.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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