Why Skyworks Solutions (SWKS) Stock is a Compelling Investment Case

If you are looking for the best ideas for your portfolio you may want to consider some of Mott Capital's top stock picks. Mott Capital, an investment management firm, is bullish on Skyworks Solutions Inc. (NASDAQ:SWKS) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Skyworks Solutions Inc. (NASDAQ:SWKS) stock. Skyworks Solutions Inc. (NASDAQ:SWKS) is a semiconductor company based in California. The stock is up 2.5% since the Mott Capital's pitch in January 2020. On a year-to-date basis, Skyworks Solutions Inc. (NASDAQ:SWKS) stock has risen by 11.3%.

On January 23, 2020, Mott Capital had released its Q4 2019 Investor Letter. Mott Capital said that Skyworks Solutions Inc. (NASDAQ:SWKS) stock rose 50% in the fourth quarter and 80% in 2019. The investment firm highlighted that the company could benefit from the deployment of 5G wireless network.

In 2019, the Mott Capital Thematic Growth Composite recorded a return of 35.85% (net of fees) as compared to 31.45% of the S&P 500 Index (total return).

Let’s take a look at comments made by Mott Capital about Skyworks Solutions Inc. (NASDAQ:SWKS) in the letter.

"Skyworks (SWKS) increased by over 50% in the fourth quarter and by over 80% for the year. The stock of the Apple supplier jumped higher in October on news that the Apple iPhone 11 was selling better than expected. Additionally, investors have started to focus on the release of the fifth generation of wireless technology, 5G. Skyworks could be a big winner in the roll-out of 5G, and the handset upgrade cycle that comes with the innovative technology."

In Q1 2020, the number of bullish hedge fund positions on Skyworks Solutions Inc. (NASDAQ:SWKS) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with Skyworks' growth potential. Our calculations showed that Skyworks Solutions Inc. (NASDAQ:SWKS) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. There is a lot of volatility in the markets and this presents amazing investment opportunities from time to time. For example, this trader claims to deliver juiced up returns with one trade a week, so we are checking out his highest conviction idea. A second trader claims to score lucrative profits by utilizing a "weekend trading strategy", so we look into his strategy's picks. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recently recommended several stocks partly inspired by legendary Bill Miller's investor letter. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.