Technology stocks have always been attractive to investors due to their rapid growth and continued innovation.

Technology companies often have high profit potential, making them a top choice for traders and investors looking for opportunities in the stock market.

This article will review QCOM stocks in depth, covering fundamental and technical analysis, as well as investment strategies that can be applied.

Basically, understanding this stock well is very important so that investors can make more informed decisions and optimize profit opportunities in the market.

Getting to Know QCOM & Its Strategic Position in the Technology Industry

The technology industry is one of the fastest growing sectors in the world, covering various aspects such as communications, artificial intelligence, hardware, and software.

Qualcomm (QCOM) has a very important role in this sector, especially in the development of chipsets and network technology.

Qualcomm is known as a leader in semiconductor technology, which supports the development of 5G networks, mobile devices, and various other technological innovations.

Currently, Qualcomm is focused on 5G technology, which is predicted to revolutionize wireless communications and increase the speed and efficiency of global networks.

In addition, Qualcomm is also developing solutions for artificial intelligence and the Internet of Things (IoT), two sectors that are expected to increasingly dominate the market in the future.

The potential of this technology is enormous, with applications that can change the way we interact with the digital world and smart devices.

QCOM stock is attractive to long-term investors because of its strong position in the technology market and its important role in 5G and IoT innovations.

The company continues to grow by providing leading technologies that support various industries, from telecommunications to autonomous vehicles.

In addition, the increasing global demand for advanced technology and semiconductors gives QCOM great growth potential in the long term.

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QCOM Stock Historical Data: Price Movement Trends and Patterns

Quoting id.investing.com, Qualcomm (QCOM) shares are currently trading at $167.96, down 0.80% at the close on February 8, 2024. In the after-hours session, the price fell further to $167.26.

The daily price range is between $166.06 and $171.30, while in the past year, QCOM shares have moved between $148.41 and $230.63.

In the past year, QCOM’s stock price has increased by 11.23%, indicating stable performance despite market volatility.

The stock’s beta of 1.26 indicates a slightly higher level of volatility compared to the overall market.

The average trading volume in the past three months was at 8,130,000 shares, with the latest daily volume recorded at 7,840,000 shares.

Here are some of the main factors that influence the movement of Qualcomm (QCOM) stock price:

1. Company Fundamentals

QCOM has a market capitalization of $185,760,000,000, with annual revenue of $40,700,000,000 and net income of $10,550,000,000. The P/E ratio of 18.27 indicates a valuation that is still relatively attractive to investors.

2. Dividends & Profitability

A dividend yield of 2.02% with a dividend payout of $3.40 per share makes QCOM attractive to income investors. In addition, a gross profit margin of 56% indicates high operational efficiency.

3. Market Sentiment & Price Projection

Currently, analyst sentiment shows a “Buy” recommendation, with a price target of $202.12, which reflects a potential upside of around 20.34% from the current price.

However, market members’ sentiments still vary between optimistic and pessimistic, indicating uncertainty in the short-term movement.

4. External Factors

The development of 5G technology, semiconductor industry regulations, and global macroeconomic conditions could have a major impact on QCOM’s stock price in the future.

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Fundamental Analysis: Is QCOM a Worthy Stock to Buy?

Before investing in QCOM stock, it is important to understand its fundamentals. The following analysis will discuss the company’s financial performance, dividends, and growth prospects.

1. QCOM Financial Performance

 1.Revenue & Net Income

Qualcomm posted revenue of $40,700,000,000, with net income of $10,550,000,000, reflecting strong profitability.

1. Key Financial Ratios

• EPS (Earnings Per Share): $9.47, indicating the profit generated per share.
• P/E Ratio (Price to Earnings): 18.27, indicating a valuation that is still competitive compared to other technology companies.
• ROE (Return on Equity): 42%, reflecting the company’s efficiency in generating profits from shareholders’ capital.

1. Impact of Latest Financial Report

• QCOM stock is currently trading at $167.96, down 0.80% from its previous close.
• The yearly price range has shown volatility, with a low of $148.41 and a high of $230.63.
• With an analyst price target of $202.12, the stock has a potential upside of 20.34%.

2. Dividends & Stock Splits

1. Dividend Payment History

Qualcomm pays a dividend of $3.40 per share with a yield of 2.02%, making it an attractive option for investors seeking passive income.

1. Shareholder Benefits

With a gross profit margin of 56%, the company has ample room to continue paying dividends and maintain financial stability.

1. Stock Splits & Impact

Currently, no stock splits have been announced. However, if conducted, it could increase accessibility for retail investors and expand the shareholder base.

3. Future Prospects & Growth Factors

1.Technology & Innovation

Qualcomm continues to develop 5G and AI technologies, which can drive future revenue growth.

1.Long-Term Analysis

With a market capitalization of $185,760,000,000, high liquidity, and solid fundamentals, QCOM has the potential to maintain long-term growth.

1.Stock Performance Prediction

With moderate market volatility (Beta 1.26) and strong EPS growth projections, this stock remains attractive for long-term investment.

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QCOM Stock Technical Analysis: When is the Best Time to Buy or Sell?

Determining the right time to buy or sell QCOM stock requires in-depth technical analysis.

By looking at indicators such as Moving Averages, RSI, and support and resistance levels, investors can understand price trends and trading opportunities. Here is the latest technical analysis for QCOM stock.

1. Important Technical Indicators

• Moving Averages (MA): QCOM’s price movement shows volatility in the daily range of $166.06 – $171.30, with short-term trends still varying.
• Relative Strength Index (RSI): RSI is at 54.68, indicating neutral conditions—neither overbought nor oversold so there is no strong signal to buy or sell.
• Support & Resistance: The support level is around $148.41, while the nearest resistance is at $171.30. If the price breaks through this resistance, the bullish potential could be even stronger.

2. Current Price Movement Trend

• Short-term trend: QCOM shares have just fallen 0.80% to $167.96 from their previous close of $169.32, with market sentiment still neutral.
• Long-term trend: The 52-week range shows a movement from $148.41 to $230.63, indicating a potential recovery if the positive trend returns.
• Bullish or Bearish Pattern: With an analyst price target of $202.12 (+20.34% upside), the stock still has a bullish outlook if it is able to break through resistance. However, if the price falls below support, the bearish trend could continue.

Investment & Trading Strategy for QCOM Stocks

Investment and trading strategies for QCOM stocks can be adjusted to the goals and preferences of each investor. Here are some strategies that can be applied.

1. Long-Term Investment Strategy

1. Holding Stocks for the Long Term

QCOM has strong fundamentals with an EPS of $9.47 and an ROE of 42%, indicating efficiency in generating profits.

With a market capitalization of $185,760,000,000 and a gross profit margin of 56%, this stock has the potential to continue growing.

Long-term investors may consider holding this stock, especially given the growing prospects of 5G and AI technologies.

1. Implementing the Dollar-Cost Averaging (DCA) Strategy

Given the volatility of this stock with an annual price range of $148.41 to $230.63, the DCA strategy can be used to reduce the risk of overpricing.

Investors can buy QCOM shares in stages every month, without being affected by short-term market fluctuations.

2. Short-Term Trading Strategy

1.Utilizing Stock Volatility for Day Trading

With daily movements between $166.06 to $171.30 and an average daily volume of 8,130,000 shares, QCOM is quite liquid for day trading.

Traders can look for entry opportunities when the price approaches the support level at $166 and exit around the resistance of $171.

1. Suitable Indicators for Short-Term Trading

• Moving Averages (MA): If the price is above the MA 50 or MA 200, the trend is still bullish and can be a buy signal.
  Relative Strength Index (RSI): When the RSI approaches 70, the stock tends to be overbought and a correction could occur.
• Conversely, if the RSI approaches 30, the stock may be oversold and has the potential to rebound.
  Trading Volume: A spike in volume can be a strong indicator of significant price movement, providing opportunities for traders to enter or exit their positions more optimally.

Conclusion

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In conclusion, QCOM (Qualcomm) stock offers attractive investment potential for both long-term investors and short-term traders.

With solid financial performance, including revenue of $40,700,000,000 and EPS of $9.47, QCOM shows strong fundamentals.

A stable dividend with a yield of 2.02% and the potential for growth in 5G and AI technology add to the attractiveness of this stock for long-term investors.

In terms of technical analysis, price volatility and indicators such as RSI and MA provide opportunities for traders to take advantage of price fluctuations in the short term.

With a large market capitalization, high liquidity, and positive growth forecasts, QCOM remains a stock worth considering in investment and trading strategies.

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FAQ

1.What makes QCOM stock attractive compared to other technology stocks?

This stock has a solid track record in the technology industry and continues to innovate with future technologies.

2.How do you know when is the best time to buy this stock?

Use technical analysis such as RSI and moving averages to see if the price is overbought or still undervalued.

3.Is this stock suitable for long-term investment or just for daily trading?

This stock has great potential for long-term investment, but its volatility is also attractive for daily traders.

4.Does this stock regularly distribute dividends?

Yes, this stock has a history of regular dividend payments, which can be an additional benefit for investors.

5.What are the main risks in investing in technology stocks like this?

The main risks are market volatility, regulatory changes, and technological developments that can change the competitive landscape.