Qualcomm Stock Continues to Grow Steadily: Is it a Must Buy?

QUALCOMM Incorporated’s QCOM valuation has grown tremendously over the past year and is currently at an all-time high. Established in 1985, the company is headquartered in San Diego, CA, and incorporated in Delaware. It manufactures semiconductors, software and services related to wireless technology.Qualcomm is a Zacks Rank #2 (Buy) company and is part of the Zacks Wireless Equipment industry. Ericsson ERIC and Motorola Solutions, Inc. MSI are two of its peers from the same industry. Both Ericsson and Motorola currently carry a Zacks Rank #3 (Hold). Over the past month, QCOM has risen 11.4% compared with ERIC’s 8.6% and MSI’s 0.4% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchQualcomm has a long-term growth outlook in areas like artificial intelligence (AI), Internet of Things (IoT) and 5G. It recently announced a partnership with Aramco and Saudi Arabia’s RDIA to launch the Design in Saudi Arabia (DISA) program. This initiative is designed to help startups use AI and IoT for industrial applications by giving them access to Qualcomm’s advanced platforms and technical expertise. Its partnership with MapMyIndia (otherwise known as Mappls) to co-develop localized product and service offerings for smart, connected vehicles is also a very recent development that may be pathbreaking.The company has been steadily growing over the last five years, with its share price having increased 77.6% over this period. It reported fiscal fourth-quarter earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.56. QCOM posted revenues of $10.24 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.49%.From a valuation standpoint, Qualcomm looks quite appealing. Its forward P/E ratio of 14.98 is well below the S&P 500’s P/E of 21.87, hinting that it might be undervalued. For the company’s next release scheduled on Feb. 5, 2025, we expect earnings of $2.93 per share, indicating a 6.55% increase from the same quarter last year. Also, our current consensus estimate forecasts revenues of $10.89 billion, indicating 9.61% growth from the corresponding quarter of the prior year.It will thus be prudent to bet on Qualcomm, which is reasonably valued at around $170, and is likely to be boosted further on a very positive outlook. The Wireless Equipment industry itself is in the top 24% of all industries in the Zacks universe, and that too must also be considered while making an investment decision.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks