Qualcomm Shares Set to Soar to New Multi-Year Highs

by Sam Collins | March 6, 2013 1:55 am

Qualcomm (NASDAQ:QCOM[1]) — This company is a leader in developing products and services based on its advanced wireless broadband technology. It recently reported fiscal first-quarter earnings of $1.26, which beat analysts’ consensus estimate of $1.13. For fiscal year (FY) 2013, ending in September, the consensus estimate has been raised to $4.50 versus $3.71 in FY 2012. And expectations have been raised for FY 2014 to $4.86.

As a result, many analysts have also raised their price objectives, which now stand at a median of $76.50, although S&P increased its target to $84.

On Tuesday, the stock blasted to the top of its bull channel on the third continuation gap since Jan. 1, after announcing that it was raising its dividend by 40% to $0.35 a share. It also added a new $5 billion stock buyback program to replace a previous $4 billion plan.

Traders can look forward to a break above last March’s high of $68.87 to the $78-$80 level. Longer-term investors could see much higher prices, even a break to the January 2000 high at $100, since this company is on an earnings tear that could exceed analysts’ estimates in every quarter in FY 2013-2014.

QCOM Chart[2]

Trade of the Day Chart Key[3]

  1. QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
  2. [Image]: https://investorplace.com/wp-content/uploads/2013/03/03-06-13-qcom.gif
  3. [Image]: https://investorplace.com/wp-content/uploads/2011/04/chart-key.gif

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