From Foolish contributor Brian Feroldi:
Skyworks Solutions’ stock has been on fire over the last few years, propelled mainly by the explosive growth of the smartphone industry. Skyworks supplies chips to nearly every major smartphone provider in the world, so demand for the company’s products has grown right along with the market. Over the last five years, the company’s top line has grown at an impressive 20% annualized, and earnings have grown even faster.
But Skyworks’ management isn’t resting on its laurels; it’s been investing aggressively to become a leader in the IoT space. Every quarter, the company announces design wins in new growth markets like drones, smart TVs, and cameras, putting the company at the forefront of the trend.
One reason I’m confident Skyworks is a great way to play the IoT trend is because the company has a history of growing sales without needing to discount its products. Believe it or not, last quarter, Skyworks was actually able to expand its non-GAAP gross margin by 410 basis points, coming in at 50.8%. That achievement should be applauded, especially when you consider that chip suppliers face huge pressure from customers to lower prices in order to maintain their market share.
Read the entire article at http://www.fool.com/investing/2016/07/16/3-stocks-to-invest-…
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