Qualcomm (QCOM) Rising Before The Market Opens

Trade-Ideas LLC identified Qualcomm (QCOM) as a pre-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Qualcomm

(

QCOM

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Qualcomm as such a stock due to the following factors:

  • QCOM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $509.5 million.
  • QCOM traded 50,253 shares today in the pre-market hours as of 7:35 AM.
  • QCOM is up 8.6% today from yesterday's close.

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More details on QCOM:

QUALCOMM Incorporated develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally. The stock currently has a dividend yield of 3.8%. QCOM has a PE ratio of 17. Currently there are 9 analysts that rate Qualcomm a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Qualcomm has been 9.0 million shares per day over the past 30 days. Qualcomm has a market cap of $81.3 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.33 and a short float of 1.2% with 2.11 days to cover. Shares are up 10.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Qualcomm as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income increased by 10.5% when compared to the same quarter one year prior, going from $1,053.00 million to $1,164.00 million.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.58, which clearly demonstrates the ability to cover short-term cash needs.
  • QUALCOMM INC has improved earnings per share by 23.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QUALCOMM INC reported lower earnings of $3.20 versus $4.40 in the prior year. This year, the market expects an improvement in earnings ($4.07 versus $3.20).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, QUALCOMM INC's return on equity exceeds that of both the industry average and the S&P 500.
  • QCOM has underperformed the S&P 500 Index, declining 14.17% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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