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Qualcomm Shares Set to Soar to New Multi-Year Highs

QCOM blasted to the top of its bull channel on its third continuation gap this year

   

Qualcomm (NASDAQ:QCOM) — This company 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 $4.50 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.

On Tuesday, the stock blasted to the top of its bull channel on the third continuation gap since Jan. 1, after announcing that it was raising its dividend by 40% to $0.35 a share. 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 the $78-$80 level. Longer-term investors could see 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 2013-2014.

03 06 13 qcom 300x202 Qualcomm Shares Set to Soar to New Multi Year Highs

chart key 300x84 Qualcomm Shares Set to Soar to New Multi Year Highs


Article printed from InvestorPlace Media, http://investorplace.com/2013/03/trade-of-the-day-qualcomm-nasdaq-qcom-6/.

©2014 InvestorPlace Media, LLC

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