San Diego, California-based QUALCOMM Incorporated (QCOM) develops and commercialises foundational technologies for the wireless industry. It is valued at a market cap of $160.1 billion.
This tech company has considerably underperformed the broader market over the past 52 weeks. Shares of QCOM have gained 6.2% over this time frame, while the broader S&P 500 Index ($SPX) has soared 29.1%. Moreover, on a YTD basis, the stock is down 8.8%, compared to SPX’s 4.3% rise.
Narrowing the focus, QCOM has also notably lagged the State Street Technology Select Sector SPDR ETF (XLK), which surged 52.2% over the past 52 weeks and 10.5% on a YTD basis.
On Apr. 29, QCOM delivered mixed Q2 earnings results after the market closed. Due to lower QCT segment revenue, the company’s total revenue declined 3.5% year-over-year to $10.6 billion, missing analyst estimates by a slight margin. Meanwhile, its adjusted EPS also fell 7% from the year-ago quarter to $2.65, but it topped the Wall Street forecast of $2.57.
For the current fiscal year, ending in September, analysts expect QCOM’s EPS to decline 18.5% year over year to $8.21. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 34 analysts covering the stock, the consensus rating is a “Hold,” which is based on nine “Strong Buy,” one "Moderate Buy,” 19 “Hold,” two "Moderate Sell,” and three “Strong Sell” ratings.
The configuration is less bullish than a month ago, with an overall “Moderate Buy” rating, consisting of 10 analysts suggesting a "Strong Buy” rating.
On Apr. 28, AllianceBernstein Holding L.P. (AB) analyst Stacy Rasgon maintained a “Hold” rating on QCOM and set a price target of $140.
While the company is trading above its mean price target of $155.85, its Street-high price target of $205 suggests a 31.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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