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Top 6 Stocks to Buy for October

These household names should perform well despite a slight correction in the overall market

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Top Stock to Buy #4 – Qualcomm (QCOM)

Qualcomm (QCOM) is a leader in developing products and services based on its advanced wireless broadband technology. It expects solid chipset sales throughout the coming year, and it is believed its Snapdragon chipset will provide an advantage in the wireless area over competitors. It has a strong royalty base in markets like China, which are converting from 2G to 3G. The consensus estimate for fiscal year (FY) 2013, ended in September, is for EPS of $4.55 and $4.96 in FY 2014.

I recommended QCOM on May 2, at the $62 area, noting that high-volume sell-offs like the one we saw in April have usually led to rebounds. Since then, the stock has pierced its old high and appears capable of continuing the move to my trading target of $76. But profit-taking could drop it to support at its 50-day moving average at $65. Thus, it would be prudent to buy a half position now and add to it if QCOM breaks out on increasing volume or pulls back to support at $65. Long-term investors have an excellent opportunity for gains in excess of the fundamental 12-month target of $85.

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