Qualcomm Looks Ready to Break to New Highs

QCOM has rebounded following a high-volume sell-off

   
Qualcomm Looks Ready to Break to New Highs

Qualcomm (QCOM) — This company 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 $4.54 and $4.95 in FY 2014. S&P reiterated its “five-star strong buy” rating and has a 12-month price target of $85.

I last recommended QCOM on May 2, near $62, noting that high-volume sell-offs like we saw in April have usually led to rebounds. Since then, the stock has been driven by high volume to its previous highs near $68 and appears capable of breaking through that level.

My trading target is $76. Long-term investors have an excellent opportunity for greater gains in excess of S&P’s target of $85.

09 06 13 qcom 300x189 Qualcomm Looks Ready to Break to New Highs
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chart key 300x84 Qualcomm Looks Ready to Break to New Highs


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/trade-of-the-day-qualcomm-qcom/.

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