QUALCOMM, Inc. (NASDAQ:QCOM) — Shares of QCOM stock fell slightly on Monday as a report from Cowen showed Intel Corporation (NASDAQ:INTC) was surpassing QUALCOMM as the No. 1 chipmaker for the Apple Inc. (NASDAQ:AAPL) iPhone 7. But QCOM stock appears to be nearing a bullish breakout and the company is fundamentally sound.
S&P Capital IQ Equity Research rates this advanced wireless broadband technology company a “Buy” with a 12-month target of $59. Its analysts note that despite challenges in the smartphone market, QUALCOMM should benefit from higher demand for 3G and 4G technology in emerging markets.
For the full fiscal year (ending in September), Capital IQ expects operating earnings to increase 24% to $3.98 per share and jump another 18% to $4.70 per share in fiscal 2017. The company’s next quarterly earnings report is scheduled to be released on July 20.
Turning to the chart, QCOM stock fell from over $80 in July 2014 to a low under $43 in February 2016. In late February, shares began to rally, and by April, they had established a consolidation with support at about $51. Resistance was established with a high over $55 in late May.
QCOM stock entered June with a golden cross, a long-term buy signal in which the 50-day moving average crosses up through the 200-day moving average, and on Monday, it flashed a buy signal from the MACD indicator. QCOM has formed a bullish right triangle with support at about $51 and resistance at $55.
Traders should attempt to buy QCOM stock on a break over $55 with a trading target of $62 for a potential return of almost 13%. Long-term investors can buy shares at the market price for long-term growth and income. QUALCOMM pays an annual dividend of $2.12 per share for a forward yield of almost 4%.
