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New Breakout Signals QCOM is an Immediate Buy

Cup-and-handle formation has been confirmed and trading objective is reinforced


Qualcomm (QCOM) — 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.

The consensus earnings estimate for fiscal 2014, ending in September, is $5.03 per share, and analysts expect $5.59 in fiscal 2015. S&P’s 12-month price target is $90.

This stock was included on my list of Top Stocks to Buy for October, when it was trading below $69. It was also reviewed on Nov. 15 near $71, and on Dec. 10 and Dec. 30 around $73.

Even though I recently covered QCOM, Thursday’s breakout is so significant that it confirms the cup-and-handle formation early in November and strongly reinforces my trading objective. Traders should buy QCOM now with a target of $80, while long-term investors should hold with an objective north of $100.  

QCOM Chart
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