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 emerging 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 is $92. The company recently increased its quarterly cash dividend by 20% to $0.42 per share, and it increased its share repurchase program by $5 billion to $7.8 billion.
This stock was included on my list of Top Stocks to Buy for October, when it was trading below $69. It has been reviewed several times since then, with the latest being on Feb. 11 at just below $75.
QCOM recently fell below its 50-day moving average, but quickly reversed. On Tuesday, it executed a breakaway gap from a bullish flag. On Wednesday, the stock achieved a new closing high accompanied by a MACD buy signal.
Traders should buy QCOM at the current price with a trading objective of $85. Investors may want to buy it as a long-term hold with an objective north of $100.