Recently, Zacks.com users have been paying close attention to Qualcomm (QCOM). This makes it worthwhile to examine what the stock has in store.
Shares of Qualcomm Inc. NASDAQ: QCOM closed at $160 on Tuesday night, once again hovering above a key long-term support level of around $150. This area has acted as a technical launchpad for the stock several times since last summer, and it's looking like it may do so again.
Qualcomm (QCOM) filed antitrust complaints against Arm Holdings (ARM), a story of "friends turning to foes," says Diane King Hall. She looks deeper into the accusations and shares why Arm took the bigger hit at the start of the trading session.
Evercore screened for stocks that should do well even if the broader market suffers.
In the closing of the recent trading day, Qualcomm (QCOM) stood at $158.26, denoting a +1.26% change from the preceding trading day.
Shares of Qualcomm Inc. NASDAQ: QCOM have been stuck in a frustrating trading range for months despite the chipmaker consistently delivering strong financial results. The stock is down 10 percent since the last week of February and has been testing the lower end of its range from December.
Qualcomm introduces advanced Snapdragon G Series platforms to deliver an immersive gaming experience to end users.
Upgraded Qualcomm Incorporated stock to a "Buy" with a fair value of $185 per share, driven by the launch of the X85 modem and recent stock sell-off. The X85 modem, launched on March 3, offers 30% faster AI inference efficiency and could outperform Apple's in-house modem, capturing AI-related mobile device growth. QCOM reported strong Q1 FY25 results, with 18% revenue growth and 24% adj. EPS growth, driven by handset, automotive, and IoT segments.
Qualcomm is a STRONG BUY due to its growing market opportunities, robust financials, and significant undervaluation, despite potential risks from tariffs and losing Apple as a customer. The company's expansion into the automotive sector, with high projected growth rates, further solidifies its promising future and revenue potential. Qualcomm's financial health is strong, with a 5-year revenue CAGR of 13.72%, net income CAGR of 23.45%, and FCF CAGR of 33.17%, alongside low debt levels.
QCOM is inherently undervalued with strong growth prospects in numerous end markets, despite the potential geopolitical/ macroeconomic headwinds. Most importantly, we believe that the management is likely to achieve the aggressive non-handset revenue guidance of $22B in 2029, as observed in the growing design wins. These reasons are also why QCOM is likely to outperform the pessimistic consensus forward estimates, with it offering rich double-digits upside potential and dividend income growth.
Qualcomm's stock is a buy due to its attractive valuation, strong earnings, and successful diversification into automotive, PC, and mixed reality markets. QCOM stock has held firm at the $150 support level, indicating a potential bottom and offering a compelling entry point for investors. Qualcomm's fundamentals are strong, with a P/E below 14x, no net debt, a 22% ROIC, and 21 years of consecutive dividend growth.
Recently, Zacks.com users have been paying close attention to Qualcomm (QCOM). This makes it worthwhile to examine what the stock has in store.