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Skyworks Solutions is one chip stock that traders should take another look at, according to investor Jenny Harrington. The Gilman Hill Asset Management CEO said she bought the chip stock after Skyworks’ most recent earnings call last week, saying the name looks more compelling than some of its peers after she learned how the firm managed through its inventory. “You need to look at each semi right now as its own. And that’s why we waited for this call because we needed to hear from management, how they manage their inventory and what they were expecting for the second half,” Harrington said Monday on CNBC’s ” Halftime Report .” She said the stock appears compelling at current valuations. The stock is up 32% in 2023, but fell roughly 40% last year. “When we’re talking about tech being overvalued, well, Skyworks is trading at 12 times, with an 11% free cash flow yield. … What they do is they make communications chips. And so every cell phone we have uses them,” Harrington said. What’s more, Skyworks has little exposure to China, meaning it does not have the same inventory issues as some of its competitors, she said. Additionally, the company is expected to grow its earnings significantly, making it a “compelling technology investment.” Fellow “Halftime Report” panelist Stephen Weiss, managing partner of Short Hills Capital Partners, disagreed that the stock has an attractive valuation, but said it could work as a play in the onshoring theme. Unlike some of its peers, Skyworks has its own manufacturing plants in the U.S. Still, Weiss, who previously held the stock, said he would wait to give Skyworks another look. “I think they’ve gone through a lot of the inventory they had, which caused the decline. Have they actually bottomed?” Weiss said. “Let me answer you this way, I think I’ll get another chance at Skyworks.”
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