Qualcomm Gains On Competitor News And Future Promises
Qualcomm is a U.S.-based chipmaker with 35 years of technological innovation under their belt. It’s their brilliance that has sent their revenue soaring alongside their stock prices year over year as they compete with the best in the biz. Everyone wants to produce the biggest, the fastest, and the most coveted chips for everyday consumption.
And it’s exactly this culture of intelligence and invention that brought about their latest unveiling: the 5G-ready Snapdragon 4 chips. This newest addition to the Snapdragon family is set to pair with Qualcomm’s new line of smartphones in early 2021 – phones with an intentionally cheap price tag and more than enough power to increase their bottom line.
Furthermore, over the last month, Qualcomm has rolled out a series of planned and in-progress works, including their newest partnership with Acer to build a new line of 5G-enabled PCs. These computers are slated to offer advanced security, electronics (read: camera and audio), and multi-day battery life, all at an affordable price tag.
How Does the Competition Factor In?
However, it’s not just these latest announcements that has Qualcomm’s stock soaring almost 42% for the year. Rather, much of their recent good fortune comes from Intel’s summer announcement that they’re delaying their 7-nanometer chips until 2022. (Note that this has not kept Intel off of our “Top Tech Stocks to Buy” list!)
This has made Qualcomm not only popular in comparison for exceeding production and profit expectations for the year, but has made their latest Snapdragon 4 the hottest chip on the block. More recently, the latest import restrictions on Huawei’s devices has bolstered Qualcomm’s stock further.
What Does This Mean for Investors on the Hunt?
While Qai’s deep-learning AI (artificial intelligence) can’t predict the future of Qualcomm definitely, we can provide a recommendation on their stock. The data underlying our decision comes from an in-house analysis of the company’s financial and technical data to provide you with the best picture of the company’s current position.
Without further aplomb, let’s take a look at what the numbers have to say.
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Qualcomm Inc (QCOM)
Qualcomm Inc closed up almost 1.5% on Wednesday, ending the middle of the week at $123.18 on volume of 9.1 million shares. This compares favorably to both the 10- and 22-day price averages, beating out the last three weeks by about $10 per share. As we mentioned above, the stock is currently enjoying a yearly high of almost 42% gains.
The company has seen success in its longer-term financial metrics, as well. The company’s Revenue and operating income are both up this year, hitting nearly $24.3 billion and $8.1 billion, respectively.
EPS has grown right alongside these metrics – up by almost 44% in the last three years, from $1.64 to $3.59. ROE has skyrocketed as Qualcomm’s good fortunes have risen as well, hitting over 153% this year compared to 7.82% three years ago.
Overall, the company is trading with a forward 12-month P/E ratio of 20.17 and the expectation of 25% growth over the next year.
So, What’s the Verdict?
Qualcomm Inc is a company with good fortunes in its tailwinds and better prospects in the future. However, that doesn’t mean that the stock is currently the best buy for investors – the market is currently trading on their potential, rather than realized success, after all.
After a thorough analysis of Qualcomm’s situation, our AI has graded the company with C’s across the board in Technical, Growth, Momentum Volatility, and Quality Value all. Therefore, although the company promises the moon, our AI thinks that it should prove its rocket flies before rating it above a Neutral.
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