Top Stock to Buy #6 – Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is a leader in developing products and services based on its advanced wireless broadband technology. It recently reported fiscal first-quarter earnings of $1.26, which beat analysts’ consensus estimate of $1.13. For fiscal year (FY) 2013, ending in September, the consensus estimate has been raised to $4.51 versus $3.71 in FY 2012. And expectations have been raised for FY 2014 to $4.86. As a result, many analysts have also raised their price objectives, which now stand at a median of $76.50, although S&P increased its target to $84.
Since Jan. 2, the stock has regularly tested the top of its bull channel with three continuation gaps, the last after announcing that it was raising its dividend by 45% to $0.35 a share. It currently yields 3.4%. It also added a new $5 billion stock buyback program to replace a previous $4 billion plan.
Traders can look forward to a break above last March’s high of $68.87 to $78-$80. Longer-term investors could expect much higher prices, even a break to the January 2000 high at $100, since this company is on an earnings tear that could exceed analysts’ estimates in every quarter in FY 2013 and 2014.