Trade of the Day: Qualcomm, Inc. (QCOM) Stock Signals More Growth

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Qualcomm, Inc. (NASDAQ:QCOM) — I last reviewed QCOM on July 12, recommending that readers buy the stock at $55 for a trade to $62. The target was achieved on July 27. Investors were told to hold for longer-term growth based on the high probability that the stock, which paid a 4% dividend, would eventually move higher.

On Nov. 3, Standard & Poor’s Capital IQ issued a research note recommending QCOM with a target of $80 based on their increase of fiscal year (Sept.) operating EPS estimate of $4.75 and an estimate of $4.93 for FY 2018. The company beat the September Q4 estimate of $1.11, reporting $1.28, and sales rose 13% aided by new license agreements with China and improved customer payments.

They have a target of $80, which is achieved by applying a P/E of 16.3 to their FY 2018 EPS.

Technically, QCOM broke to $70 in late-September with support at $64. This trading range has been maintained for about 3½ months as the stock meanders back and forth around its 50-day moving average at $67.

Yesterday MACD issued a new buy signal, but flat volume has restrained a break giving us the opportunity to buy QCOM just over the support line. Thus, traders should buy QCOM at $65 with a trading target of $76 for a proposed return of over 16%.

Investors who want to participate in the longer-term benefits of owning a key stock in the advanced wireless broadband technology group should continue to hold or even add to their positions.

QCOM B65 T76
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Trade of the Day: Qualcomm, Inc. (QCOM) Stock Signals More Growth


Article printed from InvestorPlace Media, https://investorplace.com/2017/01/qualcomm-inc-qcom-stock-growth/.

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