Qualcomm Could Pass the $100 Mark

QCOM sports a bullish chart pattern and just signaled a buy

   
Qualcomm Could Pass the $100 Mark

Qualcomm (QCOM) — This stock was included on my list of Top Stocks to Buy for October, when it was trading below $69. 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, consensus EPS estimates for fiscal year (FY) 2013, ended in September, has been raised to $5.06 from $4.55. And FY 2014 estimates have been increased to $5.50 from $4.96. S&P reiterated its “five-star strong buy rating” and has 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. 

Thursday’s break to a new high is a buy signal, and it was accompanied by a buy signal from the MACD indicator. Traders should buy QCOM at the current price with a trading objective of $80, while long-term investors could see shares rise north of $100.

11 15 13 qcom 300x200 Qualcomm Could Pass the $100 Mark
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chart key 300x84 Qualcomm Could Pass the $100 Mark


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/trade-day-qualcomm-qcom-2/.

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