Top 6 Stocks to Buy for December

These large caps are likely to play catch-up into year-end

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Top 6 Stocks to Buy for December

Top Stock to Buy #3 – Qualcomm (QCOM)

Qualcomm (QCOM) was included on my list of Top Stocks to Buy for October, when it was trading below $69, as a bargain that offered a good chance for a quick recovery. I last reviewed the stock on Nov. 15.

The 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.

Since the October report, the consensus EPS estimate for fiscal year (FY) 2013, ended in September, has been raised to $5.08 from $4.95. And FY 2014 estimates have been increased to $5.56 from $5.33. S&P reiterated its “five-star strong buy rating” and raised its 12-month price target to $90 from $85.

I have noted in the past that QCOM’s high-volume sell-offs, like that of April, have usually led to rebounds, and that is exactly what happened. The overall pattern has now evolved into one of the most rewarding formations — the cup and handle.

The mid-November break to a new high is a buy signal, and it was accompanied by a buy from the MACD indicator. Buy QCOM at the current price with a trading objective of $80. As a long-term hold, investors could see the stock trade north of $100.  

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chart key 300x84 Top 6 Stocks to Buy for December 


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/top-stocks-buy-celg-pg-qcom-sndk-tdy-yhoo/.

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