Commodity Channel Index
|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||89.56 - 93.85|
|52 Week Range||66.29 - 128.48|
|Beta (5Y Monthly)||1.21|
|PE Ratio (TTM)||18.83|
|Forward Dividend & Yield||1.76 (1.96%)|
|Ex-Dividend Date||Feb 09, 2020|
|1y Target Est||N/A|
Many tech stocks have held up relatively well during the coronavirus crisis. Mark Grant of B. Riley FBR says long-term investors can make money ‘with a little patience.’
The phrase "cash is king" is all over the internet right now as investors look for safe haven, low-debt stocks to buy in an effort to take advantage of the market's nosedive.While true, the important aspect of financial stability among U.S. firms right now is debt. Low-debt companies are not only likely to survive the coronavirus outbreak, but they'll also survive the recession that's almost certain to follow.As Carolin Schellhorn, Ph.D and assistant professor of finance at Saint Joseph's University put it: InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt any stage in the business cycle it is important to look for companies that carry relatively low debt levels, but this is even more important if the economy goes into a recession. Firms with less financial leverage have lower interest burdens. They also have more flexibility as industries respond to the structural changes associated with the global transition to a low-carbon economy. * 7 Telecom Stocks That Are Worth a Close Look With that in mind, investors should choosing financially stable stocks to invest in as a recession approaches. That means a strong cash position coupled with relatively low debt obligations -- criteria that can be hard to find on Wall Street. Low-Debt Stocks to Buy: Alphabet (GOOG,GOOGL)Source: Benny Marty / Shutterstock.com Of every stock on the market right now, I believe that Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is one of the best low-debt stocks to buy. That's because the firm is in a prime position to weather whatever storm is coming. Not only does Alphabet have an ultra-low debt to equity ratio of 2.26, but it's also cash-rich. Google is sitting on upwards of $90 billion worth of cash. Having very little debt-to-service means Google can use that capital to invest while the rest of the industry struggles. The company will be able to make strategic acquisitions when its competitors are working to stay afloat. Google, like the rest of its peers, will see some softness in ad spending in the months ahead. But the firm's dominance in the search arena means it shouldn't fare any worse than the rest of the sector. Plus, its strong cash flow position means Google is able to pay the interest on its debt without issue-- one year of Google's $48 billion worth of cashflow is enough to pay off interest expenses for half a century. Facebook (FB)Source: Chinnapong / Shutterstock.com Another of the FAANG stocks that looks likely to come out of a recession unscathed is social media giant Facebook (NASDAQ:FB). Facebook carries no long-term debt, which makes it an appealing stock to buy in today's environment. Without a huge pile of debt-to-service like many of its peers, Facebook has more room to maneuver even if things get tight.Plus, Facebook's value as a service to connect people has just shot through the roof now that about a quarter of the world's population is on lockdown. The firm's WhatsApp and Messenger services are likely to see a dramatic spike in usage. Both Facebook and Instagram will probably enjoy a bump in active user numbers as well. * 7 Small-Cap Stocks That Might Not Survive Like Google, Facebook is at the mercy of advertising spend--something that's likely to take a hit as the economy continues to soften. But that's a reality for everyone in the industry and one that Facebook looks ready to cope with. Skyworks Solutions (SWKS)Source: madamF / Shutterstock.com Another of the best stocks to buy as economic pain in the U.S. continues is Skyworks Solutions (NASDAQ:SWKS), a semiconductor firm that should benefit from the 5G rollout this year. The Massachusetts-based company was posting wild ups and downs before coronavirus became a factor. Investors worried about the trade war with China, but things were just starting to look up for SWKS stock before the virus took the market on a nosedive. Skyworks connected chips are found in all kinds of everyday electronics from smartwatches to Facebook's Oculus virtual reality headsets. As connected technology gets a boost from 5G, Skyworks will benefit. But the real reason SWKS looks like a good bet in the chip space is the firm's ironclad financial position. The company carries no long-term debt, which will be a huge benefit as supply chain interruptions due to coronavirus continue to ravage the industry. It goes without saying that buying anything, let alone a semiconductor stock, in today's market comes with a great deal of risk. But if you've got a long timeline and you can wait out some volatility, Skyworks stock looks like a good pick in the beaten down market. As of this writing Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 3 Low-Debt Stocks to Buy Before a Seemingly Inevitable Recession appeared first on InvestorPlace.
For his "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer spoke with Liam Griffin, CEO of Skyworks Solutions , the semiconductor maker on the front lines of the coming 5G wireless rollout. Regarding the Covid-19 outbreak, Griffin said that Skyworks Solutions operations in China are returning to normal. In this daily Japanese candlestick chart of SWKS, below, we can see that in just two months prices gave back the entire rally from the May/June lows.
By now, the coronavirus isn’t news. We all know what’s going on, even if we’re not quarantined or languishing in lockdown. COVID-19, spreading in a global pandemic, has struck markets with a hammer blow, and the main indexes remain down at least 29% from their February highs.Investors are confused. We’ve seen bouts of panic selling, along with sporadic purchase activity by insiders, and there has been no consistency in stocks’ reactions to the news cycle.Still, there are some sectors that are likely to keep bring returns for investors long-term. Among the chief of these are tech stocks, especially those connected to the ongoing – and accelerating – 5G rollout. This is the cutting edge of wireless digital tech, the thin end of the wedge for mobile technology, and even in today’s bear market conditions, the tech stocks involved in 5G are likely to see profits. And that means returns for investors.We’ve used the TipRanks database to pull up three such stocks; all are Buy-rated, and boast 40% or higher upside potential. Let’s take a closer look.Marvell Technology Group (MRVL)We’ll start with one of the smaller semiconductor chip makers. Marvell is a Silicon Valley company, with a $13.9 billion market cap and fiscal 2019 profits of $179 million on $2.86 billion in revenues. The company has facilities in 14 countries.In the past year, Marvell flexed its muscle in two important corporate acquisition; the chipmaker acquired to rivals, Avera and Aquantia, in cash deals that cleared away competition and gave the company a smoother path forward. Marvell has also partnered with both Korean tech giant Samsung and Finnish handset maker Nokia on 5G processor chips, in moves described as ‘major wins’ for Marvell.In the Nokia arrangement, the Finnish handset maker said that it engaged with Marvell “to solve its 5G chip problems,” a clear endorsement of Marvell’s industry reputation. And Samsung is one of the world’s largest smartphone manufacturers – securing a position to supply the company’s 5G compatible chips, in advance of the device rollout cycle, puts Marvell in a strong competitive position against its peers.In Q4 2019, Marvell reported revenue and EPS both below the year-ago figures – but beat the quarterly forecasts. Revenue, at $717.7 million, was almost 1% better than expected, while EPS, at 17 cents, was a full 6.25% above the estimates. Beating the estimates was a welcome change from Q3’s miss, and the success was attributed to the partnerships with OEMs Samsung and Nokia. Securing the supplier relationships with two major OEMs puts Marvell in a solid position to gain as new 5G handsets and devices hit the market.Marvell has received warm reviews from two 5-star analysts in recent weeks. Writing or Rosenblatt Securities, Hans Mosesmann gives the stock a Buy rating with a price target of $32, which implies an upside of 68%. (To watch Mosesmann’s track record, click here)Backing his stance, Mosesmann says, “Impressive execution even with the expected COVID-19 headwind (5% hit to the 1Q guide), as the company continues to accelerate 5G content and share within Samsung and a highly multi-year 5G engagement with Nokia. We see no other silicon player that has the broad processor/baseband/networking portfolio, IP, customization, and S/W compatibility capabilities that Marvell has…”Also bullish is Oppenheimer’s Rick Schafer. Schafer’s $30 price target suggests room for 55% upside growth in support of a Buy rating.In his comment on the stock, Schafer writes, “Acquisitions of Aquantia and Avera further bolster MRVL’s position in automotive and networking. MRVL’s emerging growth story, led by 5G infrastructure builds takes root this year. Beyond 5G, we see the next leg of greenfield growth led by automotive connectivity.” (To watch Schafer’s track record, click here)Overall, Marvell gets a Moderate Buy rating from the analyst consensus, based on a total of 15 reviews. These reviews include 12 Buys and 2 Hold, along with a single Sell. Shares are priced low for a high-end tech company, at $19.34, and the $29.14 average price target indicates a 50% upside potential. (See Marvell’s stock analysis at TipRanks)Skyworks Solutions (SWKS)Our next company, Skyworks, has suffered recently as its fortunes are closely tied to Apple’s. This mid-cap semiconductor company is a major supplier for Apple’s iPhone line, and has seen its own fortunes decline since the giant admitted that Q2 earnings will not meet expectations in the wake of the coronavirus epidemic. The extent of Skyworks’ dependence on Apple is clear from a single statistic: in fiscal 2019, the chip company made 51% of its total revenue from sales to Apple.While partly a weakness, this link to Apple also gives Skyworks a clear entry into the 5G chip market. The company’s products will power the new 5G iPhones – and makes Skyworks the supplier for an end-user base over 900 million strong, and loyal to their iPhones. It’s a solid foundation for Skyworks.Still, the share price is down. But – that fall in share price may be an opportunity to buy cheap now. Skyworks has lowered guidance of fiscal Q2 revenue and earnings, in a move that parallel’s Apples. The chip maker, however, has an advantage over Apple, in that it’s major manufacturing facilities are located in the US, and so are immune to both coronavirus trade disruptions and US-China tariff issues. This puts Skyworks on firm foundation to ramp up production when market conditions return to normal.That ‘return to normal’ is seen as likely in 2H20, as 5G is coming, and will not be long delayed. Apple will be introducing 5G compatible iPhones, and Skyworks is positioned as the prime supplier of chips for the devices.Michael Walkley, 5-star analyst with Canaccord Genuity, sees a clear path forward for Skyworks. He writes, in a comment published earlier this month, “We anticipate a strong recovery in Mobile Products starting in 2H/C20 with the 5G rollout on track driving increased dollar content along with the seasonal ramp for Apple’s anticipated 5G lineup…”Walkley’s $125 price target implies an upside of 57% for the coming 12 months, and support his Buy rating on this stock. (To watch Walkley’s track record, click here)Skyworks’ Moderate Buy consensus rating is based on no fewer than 16 Buy-side reviews, which overbalance the 6 Holds the stock has also received. SWKS sells for $83, and the $128.79 average price target suggests that the stock has room for 55% growth going forward. (See Skyworks stock analysis on TipRanks)Inseego Corporation (INSG)We end this list with Inseego, a specialist in industrial internet mobile connection systems. The company provides the advanced modems and routers that IoT demands, especially for building device-to-cloud connections. The Internet of Things is a niche that is bound to expand as the improved latency of 5G networks comes on-line.Along those lines, Inseego did state in the recent Q4 report that it has 5G trials in progress with 20 mobile operators around the world. The comment was distressingly non-specific; however, management did reveal that INSG realized $11 million in revenue from 5G initiatives during the quarter, in North America, Europe, the Middle East, and the Asia-Pacific regions.In other Q4 results, INSG saw a deeper loss than expected, at 10 cents per share. Revenues came in at $52.33 million, in line with estimates but down 6.6% year-over-year. On a positive note, the company’s balance sheet improved, as it reduced debt by some $60 million. Also positive was a capital infusion from Mubadala, worth $25 million. The new capital helps support INSG as it moves forward on its 5G plans.Canaccord analyst Walkley, quoted above, reviewed Inseego, as well, and said of the company’s forward path, “We believe Inseego will deliver very strong 2H/2020 and C2021 growth as global carriers launch 5G networks and ramp volumes of Inseego’s growing product portfolio of X55 powered 5G products. As evidenced by the company’s 20 active 5G trials, Inseego’s growing sales team continues to build an impressive pipeline of new opportunities.”Walkley puts a $7.50 price target on this stock, implying an impressive 32% upside from current price levels. He adds a Buy rating, believing that now is the time to buy into Inseego. (To watch Walkley’s track record, click here)Inseego has a unanimous analyst consensus rating, a Strong Buy based on 6 Buy-side reviews set in recent weeks. Shares are priced at $5.69, and have an average price target of $8.60. This suggests that the stock has room for 52% growth in the next 12 months. (See Inseego stock analysis at TipRanks)
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
IDC cuts 2020 worldwide IT spending forecast as the coronavirus crisis may compel corporates to cut or postpone their non-essential technology investment plans.
These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. Specifically, Marvell reduced its April-quarter outlook by 5% and provided a wider revenue range to account for the potential coronavirus impact. The primary driver of our estimate revision reflects higher revenue expectations and lower operating expenses.
Chipmaker Marvell Technology Group late Wednesday beat Wall Street's targets for its fiscal fourth quarter and guided higher for the current period. The news sent MRVL stock higher.
(SWKS) (SWKS) is the latest tech company to lower its outlook because of coronavirus’ impact on both global supply chains and demand in China. On Wednesday Skyworks (ticker: SWKS), which makes chips used by (AAPL) (AAPL) and other mobile phone companies, said it now sees revenue of $760 million to $770 million for its fiscal second quarter ending March 27, down from a previous forecast of $800 million to $820 million. The company trimmed its non-GAAP profit outlook to $1.34 a share at the midpoint of the revenue range, from $1.46.
Skyworks Solutions Inc. announced Wednesday that it was reducing its revenue and earnings forecasts due to impacts from COVID-19, the disease brought on by the novel coronavirus. The semiconductor company now expects fiscal second-quarter revenue of $760 million to $770 million, below a previously issued forecast of $800 million to $820 million. Skyworks now expects $1.34 in adjusted earnings per share at the midpoint of its new revenue range, whereas it was calling for $1.46 at the midpoint of its earlier revenue range. "Although COVID-19 has caused no significant disruption within Skyworks' manufacturing operations to date, the current demand environment for our products has been negatively impacted by interruptions in global supply chains," Chief Executive Liam Griffin said in a release. The company is the second Apple Inc. supplier to lower its forecast this week, after Qorvo Inc. did so Tuesday. Skyworks shares have lost 14% over the past month, as the S&P 500 has dropped 6.2%.
Skyworks Solutions was rising in trading Wednesday despite the semiconductor company lowering its second-quarter expectations due to the fallout from the coronavirus epidemic. Analysts were expecting the company to report earnings of $1.44 a share on revenue of $797.8 million. "Although Covid-19 has caused no significant disruption within Skyworks' manufacturing operations to date, the current demand environment for our products has been negatively impacted by interruptions in global supply chains," said CEO Liam K. Griffin.
Earlier in February, Apple warned that sales for the first three months of the year would fall short of estimates as the coronavirus outbreak affected both production and demand in China. Apple accounted for 51% of Skyworks' net revenue in 2019, according to a regulatory filing. Skyworks also derives nearly 20% of its annual revenue from China.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll look at Skyworks...