Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
QUALCOMM Incorporated (QCOM) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
QUALCOMM Incorporated (QCOM) - free report >>
Image: Shutterstock
Qualcomm Stock Continues to Grow Steadily: Is it a Must Buy?
QUALCOMM Incorporated’s (QCOM - Free Report) valuation has grown tremendously over the past year and is currently at an all-time high. Established in 1985, the company is headquartered in San Diego, CA, and incorporated in Delaware. It manufactures semiconductors, software and services related to wireless technology.
Qualcomm is a Zacks Rank #2 (Buy) company and is part of the Zacks Wireless Equipment industry. Ericsson (ERIC - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) are two of its peers from the same industry. Both Ericsson and Motorola currently carry a Zacks Rank #3 (Hold). Over the past month, QCOM has risen 11.4% compared with ERIC’s 8.6% and MSI’s 0.4% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Qualcomm has a long-term growth outlook in areas like artificial intelligence (AI), Internet of Things (IoT) and 5G. It recently announced a partnership with Aramco and Saudi Arabia’s RDIA to launch the Design in Saudi Arabia (DISA) program. This initiative is designed to help startups use AI and IoT for industrial applications by giving them access to Qualcomm’s advanced platforms and technical expertise. Its partnership with MapMyIndia (otherwise known as Mappls) to co-develop localized product and service offerings for smart, connected vehicles is also a very recent development that may be pathbreaking.
The company has been steadily growing over the last five years, with its share price having increased 77.6% over this period. It reported fiscal fourth-quarter earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.56. QCOM posted revenues of $10.24 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.49%.
From a valuation standpoint, Qualcomm looks quite appealing. Its forward P/E ratio of 14.98 is well below the S&P 500’s P/E of 21.87, hinting that it might be undervalued. For the company’s next release scheduled on Feb. 5, 2025, we expect earnings of $2.93 per share, indicating a 6.55% increase from the same quarter last year. Also, our current consensus estimate forecasts revenues of $10.89 billion, indicating 9.61% growth from the corresponding quarter of the prior year.
It will thus be prudent to bet on Qualcomm, which is reasonably valued at around $170, and is likely to be boosted further on a very positive outlook. The Wireless Equipment industry itself is in the top 24% of all industries in the Zacks universe, and that too must also be considered while making an investment decision.