There is a lot of buzz going around with the recent release of the Apple (AAPL) Watch. This week Brian Bolan and Terry Ruffolo discuss a supply chain stock for the big red fruit and then take a look at another company that is now in competition with AAPL.
Skyworks Solutions (SWKS) has been a favorite of Kevin Cook, the editor of Zacks Follow The Money Trader portfolio and Market Timer, for some time now. SWKS is one of the suppliers for Apple and Brian discusses with Terry while there hasn't been a tear down of the Apple Watch just yet, this company has been listed as a parts supplier for other AAPL products. Brian expects to see some Apple Watch tear downs to hit YouTube in the coming week or so.
SWKS is a Zacks Rank #1 (Strong Buy) and exhibits the Growth Style Score of "A" and Brian Bolan notes that this is just what aggressive growth investors want to see. Brian goes on to note that earnings growth has increased from 53% in FY14 to 63% in FY15.
The other company Terry and Brian took a look at is Movado (MOV). This company makes watches that are more in the jewelry style of watches. Terry questioned if this is a good comp as the Apple Watch is more about functionality but Brian noted that they could see some market share declines as they are a competitor. MOV does carry a Style Score of "A" for Growth, Value and Momentum - so that should get it on your radar screen. MOV is also a Zacks Rank #1 (Strong Buy).