Qualcomm Established New Bull Channel as Market Struggled

by Sam Collins | April 16, 2014 1:56 am

Qualcomm (QCOM[1]) — This company develops products and services based on its advanced wireless broadband technology. I have been recommending the stock for over a year, most recently on March 6[2], at $77. It was highlighted because it anticipates solid chipset sales throughout the coming year, and its “Snapdragon” chipset is expected to provide an advantage in the wireless area over competitors. It also has a strong royalty base in markets like China, which are converting from 2G to 3G.

Since I last covered the company, earnings estimates for fiscal 2014, ended in September, have increased a penny to $5.12 per share, while fiscal 2015 estimates are up $0.04 to $5.71. The company also increased its quarterly cash dividend by 20% to $0.42 per share, and increased its share repurchase agreement by $5 billion to $7.8 billion. S&P rates it a “five-star strong buy” with a 12-month price target of $92.

Despite a general market adjustment, QCOM stabilized at its 50-day moving average and has established a new bull channel with support at its 50-day moving average at $77.

Accumulation has increased at a steady pace, and MACD is turning up.

Traders should buy QCOM below $78 with a target of $88. Investors should consider this stock as a long-term hold.

QCOM Chart
Click to Enlarge

Chart Key[3]

  1. QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
  2. on March 6: https://investorplace.com/2014/03/trade-day-qualcomm-qcom-7/
  3. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2014/04/trade-day-qualcomm-qcom-8/
Short URL: http://invstplc.com/1hSTQXz