Qualcomm Incorporated (QCOM:NSD) Analysts rate as Strong Buy, 10 positive signals detected

STA Research
by: STA Research
Qualcomm Incorporated

Based on the QCOM stock forecast from 20 analysts, the average analyst QCOM target price is USD 197.90 over the next 12 months. Qualcomm Incorporated’s average analyst rating is Strong Buy. Stock Target Advisor’s own QCOM stock forecast is Slightly Bullish, which is based on 10 positive signals and 7 negative signals. At the last closing, QCOM stock price was USD 153.42Qualcomm stock price has changed by +1.71% over the past week, +26.24% over the past month and +7.71% over the last year.

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). It also provides development, and other services and related products to the United States government agencies and their contractors. QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

On a risk adjusted basis, the Qualcomm stock dividend performed well as compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The Qualcomm stock dividend has been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns:

The QCOM dividend has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The QCOM stock price had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The QCOM stock price had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio:

The QCOM dividend is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Overpriced compared to book value:

The QCOM stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

The QCOM stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the QCOM stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

The QCOM stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

The QCOM stock price has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

The QCOM stock price has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth:

The QCOM stock price has shown below median dividend growth in the previous 5 years compared to its sector.

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