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Stock Picks And Rationale: Skyworks Solutions, And The Southern Company

969 Words4 Pages

Stock Picks and Rationale 1

Stock Picks and Rationale
Chad Robinson
Central Piedmont Community College
BUS110-22

Abstract
This paper will include the reasoning behind my choosing of three companies for the assigned Stock Project. During this project, the objective is to follow three companies of my choosing over a 12 week period. The companies I have chosen include: Skyworks Solutions (SKWS), Bank of America (BAC), and The Southern Company (SO). I have chosen each stock for a definitive reason and will explain as to why in the following paper.

For this Stock Project, I am purchasing three stocks: Skyworks Solutions, Bank of America, and The Southern Company. I have chosen three companies …show more content…

Now with the economy showing signs of strengthening, interest rates could possibly be increased by the Federal Reserve Bank in order to stave off inflation. In turn, this should increase banks’ profits. (Russonello, G. 2016, December 14) This is why I have decided to also invest in Bank of America (BAC). The financial sector, more accurately the banking sector, is a great opportunity for value investing. Value investors search for stocks that the market price doesn’t fully reflect the business's future cash flow. BAC is currently operating at a P/E ratio of 17.1 which is about 13 times the earnings, which is below average according to Investopedia. (I. 2015, April 17) A low P/E can indicate that a company may be undervalued or that the company is doing exceptionally well in comparison to its past trends. Therefore, based on the current economic climate, I believe that BAC is in for an upward swing in price over the next few …show more content…

(2016, January 21). Skyworks Solutions Inc.: Investing in the New World (SWKS). Retrieved January 29, 2017, from http://investorplace.com/2016/01/skyworks-solutions-inc-investing-in-the-new-world-swks/#.WIbJEH3DgVg
Detar, J. (2015, June 22). Apple Chip Supplier Skyworks Targets 5G, IoT Markets. Retrieved January 29, 2017, from http://www.investors.com/news/technology/skyworks-lab-to-design-internet-of-things-chips/
Russonello, G. (2016, December 14). How the Fed’s Interest Rate Increase Can Affect You. The New York Times. Retrieved January 24, 2017, from https://www.nytimes.com/2016/12/14/business/economy/how-the-feds-interest-rate-increase-can-affect-you.html?_r=0
I. (2015, April 17). Is the banking sector a good choice for value investing? Retrieved January 29, 2017, from http://www.investopedia.com/ask/answers/041715/banking-sector-good-choice-value-investing.asp
Brewer, R. G. (2016, March 04). How Risky Is Southern Company's Stock? Retrieved January 29, 2017, from

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