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Investors are always on the lookout for high-flying growth stocks as they lead to big gains. One such high-flyer is Skyworks Solutions (NASDAQ:SWKS), which started 2014 on a positive note with the stock gaining after the first-quarter results. With a strong client base that includes various smartphone makers including Apple (NASDAQ:AAPL) and Samsung, Skyworks can soar to new highs.

The company's strong client base and healthy outlook are strong pointers toward a bright future. It expects year-over-year revenue growth of 11% in the present quarter. Also, earnings are expected to jump 23%. Both these growth projections are ahead of analyst expectations.

Big opportunity in China

Skyworks' key to success is its focus on strong customers and lucrative markets. With China being one of the leaders in smartphones, Skyworks Solutions finds it to be a big opportunity to be successful. Skyworks' management says that 80% of phone users in China are presently carrying 2G devices. The company expects such customers to upgrade to newer and faster phones in the future that have higher connectivity options, resulting in an increase in demand for the chips that Skyworks makes.

Having key customers such as Apple has also benefited Skyworks Solutions and it should continue happening in the future. With the introduction of clients' products in new markets, Skyworks should continue gaining. Apple's China Mobile (NYSE:CHL) deal is expected to provide momentum to Skyworks Solutions as Apple can finally tap into more than 700 million subscribers on the China Mobile network.

Analysts expect Apple's sales to receive a boost in the 15 million-30 million units range. So, Skyworks should get greater chip order from Apple as it ramps up production this year.

A big boost in addressable market

On the other hand, analysts expect 70% growth in the LTE-powered smartphones in Asia in the next couple of years. Skyworks Solutions is readying itself to profit from this trend in the future. Skyworks' partnership with MediaTek should open up almost the half of the Chinese smartphone business going forward, since MediaTek is the leading chip manufacturer in the country.

Further, Skyworks is looking good to benefit from General Electric's "industrial internet," a concept that I had discussed in a series of articles last year. Skyworks management is looking to benefit from the 50 billion connected devices that are expected to go online by 2020 to power the industrial internet. Skyworks has struck up partnerships with important companies such as GE Medical, Medtronic, and Boston Scientific, and it is especially excited about the General Electric (NYSE:GE) opportunity.

Also, according to a report by Morgan Stanley, the world will have 75 billion connected devices by the end of 2020. Since Skyworks is a supplier of connectivity chips for different types of applications, it should benefit from this trend. Skyworks has also made certain product development moves to get ahead in this market. The company's 802.11ac Wi-Fi chip should help enable connectivity in various connected devices including 4K televisions, set-top boxes, blu-ray players, and 4G LTE devices.

Samsung: Another growth driver

Also, Skyworks is also in a great position to profit from Samsung's upcoming smartphones. Skyworks supported Samsung's Galaxy S4 platform last year and it can be expected to do the same this time also. Samsung (OTC:SSNLF) is reportedly preparing a cutting-edge device that is expected to have a huge number of features. The Galaxy S5 is expected to be waterproof, priced attractively, equipped with a better battery and camera, and a Quad-HD display with 560ppi pixel density in a 5.2 inch screen.

Conclusion

So, from all angles, Skyworks appears to be in a very strong position. Another impressive part about the company is its really attractive valuation. Skyworks' trailing P/E is 19.57 while the forward P/E is just 10.88. Hence, it is expected that the company's earnings will grow in the future. Analysts also believe the same as earnings are expected to grow at a CAGR of 16% over the next five years. So, Skyworks is a solid stock that's worth buying.

Source: Missing This Stock Means Missing A Lucrative Investment