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.