In the last week, three stocks fell fast enough that their shares are now on sale.
Skyworks Solutions (SWKS) lost 22.4% of its value after posting fiscal first-quarter earnings. The chip supplier to Apple reported revenue falling by 10.8% Y/Y to $1.07 billion. Although it secured 5G content deals for Android suppliers (Samsung, Xiaomi, and Asus), investors sold SWKS stock.
For Q2, Skyworks expects revenue and EPS to meet consensus estimates. However, CFO Kris Sennesael is anticipating a mid-to-high teens sequential decline in the mobile market. To support shareholders, the firm approved a new $2 billion stock buyback program.
elf Beauty (ELF) lost one-quarter of its value last week, closing at $71.13. The beauty supplier now expects a 27-28% Y/Y increase in net sales, down from 28-30% previously. The company started experiencing weaker sales in December. Promotions started to lose their effectiveness.
The over 20% yearly growth and modest valuation make ELF stock a buyout candidate.
Newell Brands (NWL) dropped by 26.42% on Feb. 7 after posting Q4 revenue of $1.95 billion. This year, revenue will fall again for the eighth time out of the last nine years.
NWL stock has an attractive EBITDA multiple. If Newell reports flat core sales this year, the stock might rally back to $10.00. Newell closed at $7.13.
