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Qualcomm: Buy Now or Wait?

QCOM ran up after reporting earnings, but could pull back below $60


Qualcomm (NASDAQ:QCOM) — This company is a leader in developing products and services based on its advanced wireless broadband technology.

On July 24, the Trade of the Day said, “[QCOM] appears to have found support at a quadruple-bottom just under $54, where five sessions ago, it reversed with a breakaway gap… Long-term buyers should add this premier tech stock to their portfolio now, and traders should expect a rebound to $63 to $65.”

That rebound occurred and took the stock to $65.45 on Sept. 19. Then profit-taking drove QCOM to under $58 in mid-October, but it rebounded nicely, and in each of the past four sessions, closed above its 50-day and 200-day moving averages.

The company recently reported a huge quarterly gain and raised its guidance to $3.71 for FY 2013 (ended in September) versus $3.06 in 2012. Expectations are for earnings of $4.11 in FY 2014. As a result, many analysts raised their price targets, including Nomura Group, which hiked its target to $70 to $75.

Despite the excellent report, QCOM could pull back to under $60 where there is a small gap at $59.71 to $60.38. Buy the stock at $60 for a trade to $68. Long-term investors could buy QCOM now as a cornerstone technology investment with huge potential.

Trade of the Day – Qualcomm (NASDAQ:QCOM)
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Article printed from InvestorPlace Media,

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