Strong Technical Evidence Supports Buying QCOM Here

by Sam Collins | February 11, 2014 1:03 am

Qualcomm (QCOM[1]) — 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 $5.11 per share, and analysts expect $5.67 in fiscal 2015. S&P’s 12-month price target was recently increased from $90 to $92. 

This stock was included on my list of Top Stocks to Buy for October[2], when it was trading below $69. It has been reviewed several times since then, with the latest being on Jan. 17[3] at just below $75.

Even though I covered QCOM a few weeks ago, the recent pullback and recovery above its 50-day moving average, accompanied by a new MACD buy signal, is strong technical evidence that this stock is preparing to break to a new high.  

Traders should buy QCOM at the market with an $85 target. Investors could buy as a long-term hold with an objective north of $100. 

QCOM Chart
Click to Enlarge

Chart Key[4]

  1. QCOM:
  2. Top Stocks to Buy for October:
  3. on Jan. 17:
  4. [Image]:

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