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QUALCOMM Incorporated (QCOM), headquartered in San Diego, California, develops and commercializes foundational technologies for the wireless industry worldwide. Valued at $217.18 billion by market cap, it is the world's largest supplier of chipsets and system software for mobile devices. The company markets and manufactures digital wireless telecom products and services based on CDMA technologies.
Shares of this mega-cap technology giant have outperformed the broader market considerably over the past year. QCOM has gained 86.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.9%. In 2024 alone, QCOM stock is up 33.6%, surpassing SPX’s 11.1% rise on a YTD basis.
Zooming in further, QCOM’s outperformance is also apparent compared to the Semiconductor iShares ETF (SOXX). The exchange-traded fund has gained about 63.6% over the past year. Moreover, QCOM’s gains on a YTD basis outshine the ETF’s 19.5% returns over the same time frame.
QCOM shares surged more than 9% after reporting better-than-expected adjusted EPS of $2.44 for Q2. The company also provided optimistic EPS guidance for the current quarter between $2.15 and $2.35, whose midpoint was above the consensus of $2.16. Since its earnings release on May 1, the stock has maintained an uptrend.
For the current fiscal year, ending in September, analysts expect QCOM’s EPS to grow 17.8% to $7.81 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 28 analysts covering QCOM stock, the consensus rating is a “Moderate Buy.” That’s based on 17 “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with 15 suggesting a “Strong Buy.”
Recently, Argus Research analyst Jim Kelleher maintained a “Buy” rating on QCOM stock, raising the price target from $180 to $205, implying a potential upside of 6.1% from current levels.
The mean price target of $176.11 represents a 9.7% downside from the current price levels, but the Street-high price target of $206 suggests an upside potential of 6.6%.
On the date of publication, Dipanjan Banchur 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.
