Qualcomm (NASDAQ:QCOM) — This company is a leader in developing products and services based on its advanced wireless broadband technology. Qualcomm reported fiscal Q1 earnings for the period ending in December of $1.26, which beat analysts’ consensus estimate of $1.13. On April 25, fiscal Q2 earnings of $1.06 were reported, which was $0.01 better than S&P’s estimate, but QCOM missed its revenue forecast by 1.5%.
The stock reacted by gapping down from $66 to $62.81, and then near $61.50 where it may have bottomed. S&P reiterated its “five-star strong buy” rating and increased its 12-month price target by $1 to $85.
Note that QCOM has found support at the $61.50 level before, and high-volume sell-offs like that of April 25 have usually led to rebounds. MACD is clearly oversold, and on Wednesday, the stock was among the few that advanced while the Dow was off 139 points.
Investors should buy QCOM under $62 with a 12-month target of $90, which is the upper resistance line on the weekly chart (not shown).