Will Shares of Qualcomm Continue to Soar in 2021?

NASDAQ: QCOM | Qualcomm Inc. News, Ratings, and Charts

QCOM – With the world undergoing a rapid digitalization, the demand for advanced technology has increased significantly. QUALCOMM (QCOM) is at the forefront of the recent 5G revolution. The stock has performed well so far this year, but will that continue? Let’s find out.

Based in San Diego, California, QUALCOMM Incorporated (QCOM) has transformed the world in a big way with its advanced technologies. Operating in China, South Korea, Taiwan, and the United States, QCOM designs and manufactures semiconductors and wireless telecommunications products. It has three main business units — Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI).

On a year-to-date basis, QCOM has rallied 58.8% to close yesterday’s session at $147.69. During the past three months, QCOM soared 31.7%. QCOM also invests heavily in promising startups. The company’s growth was boosted by the 5G revolution. This impressive performance and potential upside based on a number of factors have helped the stock earn a “Strong Buy” rating in our proprietary ratings system.

Here is how our proprietary POWR Ratings system evaluates QCOM:

Trade Grade: A

QCOM is currently trading above its 50-day and 200-day moving averages of $125.25 and $103.27, respectively, indicating an uptrend. Moreover, QCOM has gained 73.9% over the past six months, reflecting solid short-term bullishness.

QCOM’s total revenues increased 35% year-over-year to $6,502 million for the fiscal fourth quarter that ended September 2020. This impressive revenue performance was primarily driven by the company’s investments in 5G. QCOM’s Non-GAAP net income increased 76% year-over-year to $1.7 billion. EPS increased 86% year-over-year to $1.45.

Qualcomm Ventures has invested more than $170 million in the global 5G ecosystem. On November 10th, Qualcomm Ventures announced new investments in Celona, Cellwize, Azion, and Pensando, to accelerate the growth of 5G. Last month, QCOM unveiled the Qualcomm Immersive Home Platforms, which integrates high powered Wi-Fi 6 and 6E.

On October 20th, Verizon (VZ), Ericsson (ERIC), and QCOM became the first in the world to achieve 5G peak speed of 5.06 Gbps. The company also teamed up with Reliance Jio Platforms to fast track the development of 5G solutions in India with a virtualized RAN.

Buy & Hold Grade: A

In terms of proximity to its 52-week high, which is a key factor that our Buy & Hold Grade takes into account, QCOM is pretty well positioned. The stock is currently trading just 1.2% below its 52-week high of $149.41, which it hit on November 9th.

The company’s net revenue grew at a CAGR of 1.9% over the past three years, while EBITDA increased at a CAGR of 8% over the same time period. Also, EPS increased at a CAGR of 40.2% over the past three years. This can be attributed to the consistent developments made by the company and its tie-ups with several companies.

Peer Grade: A

QCOM is currently ranked #3 out of 86 stocks in the Semiconductor & Wireless Chip industry. Other popular stocks in the industry are Taiwan Semiconductor Manufacturing Company Ltd. (TSM), Texas Instruments Incorporated (TXN), and NXP Semiconductors N.V. (NXPI).

QCOM gained 58.8% year-to-date, beating 50.9%, 18.1%, and 10.2% returns of TSM, TXN, and NXPI, respectively.

Industry Rank: A

The Semiconductor & Wireless Chip industry is ranked #10 out of the 123 StockNews.com industries. This industry is known for working behind the scenes making chips, which are used in many technology products, especially in the computer industry and the telecommunications industry. With the ongoing rapid digitalization, the market demand for advanced technologies is more now than ever. With the 5G revolution just having started, the industry is expected to grow exponentially in the upcoming years.

Overall POWR Rating: A (Strong Buy)

QCOM is rated a “Strong Buy” due to its short-and-long-term bullishness, solid growth prospects, and underlying industry strength, as determined by the four components of our POWR Ratings system.

Bottom Line

QCOM has the potential to soar in the upcoming months despite gaining 58.8% so far this year, based on its continued business growth, favorable earnings and revenue outlook, and strong financials.

Analyst sentiment, which gives a good sense of a stock’s future price movement, is pretty impressive for QCOM. It has an average broker rating of 1.38, indicating favorable analyst sentiment. Of the 26 Wall Street analysts that cover the stock, 19 rate it a “Strong Buy.” Moreover, QCOM has an impressive earnings surprise history with the company beating consensus EPS estimates in each of the trailing four quarters. The consensus revenue estimate of $8.23 billion for the quarter ending December 2020 indicates 62.7% growth from the same period last year. Its EPS is expected to grow 10.5% next year. This outlook should keep QCOM’s price momentum alive in the near term.

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

Is the Bull Market Back on Track?

5 WINNING Stocks Chart Patterns


QCOM shares were trading at $145.52 per share on Thursday afternoon, down $2.17 (-1.47%). Year-to-date, QCOM has gained 68.43%, versus a 11.96% rise in the benchmark S&P 500 index during the same period.


About the Author: Manisha Chatterjee


Since she was young, Manisha has had a strong interest in the stock market. She majored in Economics in college and has a passion for writing, which has led to her career as a research analyst. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
QCOMGet RatingGet RatingGet Rating
TSMGet RatingGet RatingGet Rating
TXNGet RatingGet RatingGet Rating
NXPIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Qualcomm Inc. (QCOM) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All QCOM News