I'm still buying dips, toast. For the time being, things have changed,for the market a bit. So, I am using more caution/patience as a buyer right now.
But, I have seen this in many many stocks over the past two decades. A very hot stock slows down, then pulls back, and goes flat for months. All the while, the company is still executing and growing at a high level. Suddenly,because of the growth, investors come back in bunches, and up the pps goes again. Again, I continue to add shares with a long time horizon.
Weathering short term storms is part of making money in the stock market. Swks has been a tremendous stock the past 18 months. The company's growth story is still intact. The stock and the sector are getting smacked for reasons that have nothIng to do with the individual financial perfromance and growth prospects. The downdraft will end. Adding shares while the stock struggles is a prudent move...albeit, a bit more caution is apparently warranted right now.
Good luck longs!!
Next step in China is the government announcing more easing efforts to support economic growth. The market will cheer.
Here's the list of analysts and their new and (previous) PT's. All nine of these were updated after SWKS announced earnings Thursday.
Pac Crest 120 (110)
Stephens. 120 (110)
Ascendant 120 (114)
BMO 121 (115)
Hallum 125 (110)
Mizuho 120 (115)
Topeka 120 (105)
Brean 120 (110)
B. Riley 127 (?)
Thanks for sharing your number-crunching, DS. I agree estimates are conservative. I also would rather they be conservative than overly aggressive. Nothing worse than estimates that march ahead of the real business. By the way, I think if we look back one year at estimates for FY15, we would see a very similar underestimation for EPS and revenue.
That was an intraday V-shaped recovery from the low $44's, DS. So, not a sustainable PE contraction. I don't believe a PE drop below 20 right here would be sustainable either...so, any price below $97.
The reason I like looking at the PE range for SWKS, obviously, is because the PE is reflective of a companies growth prospects. With $7 EPS on the "mid-term" horizon, there is no reason for the market to contract the PE of SWKS at this point. The growth story is in tact, and so should be the historical ttm PE.
21 - 26 (give or take) has been the ttm PE range within the quarter for the past four quarters. So, as you said, the low figures to be $102, and the high $126, if the model holds true this quarter. IMO, one can throw out today in light of the typical crazy-trade that is often seen right after ER. I would also note, the ttm PE going into ER yesterday was 23.65 ($103.12/$4.36). I expect the PE to return to 23.65 in the next 60 days max...so, pps of $115 by 9/30.
So, if one is buying today, it figures they will be handsomely rewarded by the end of October.
Things change for the better just as fast, richmas. The future is bright for SWKS. A disconnect between that and the stock is not an uncommon thing. But, it won't last.
Nice, richmas!! I jumped into more shares at $103.92 this morning. Just didn't see this one coming by any stretch of my imagination. Short term BS.
No doubt it's surprising based on the earnings call. But, I've learned, the short term is often full of surprises. For now, it looks like a "sell the news" scenario.