Qualcomm (QCOM) Stock Is the ‘Chart of the Day’

TheStreet's Chris Versace and Bob Lang said that a strong semiconductor sector bodes well for a strong market.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report  are up 0.29% to $54.35 in early-afternoon trading on Monday.

Qualcomm is a San Diego, CA-based semiconductor and smartphone supplier.

The company released a new mobile processor today, the Snapdragon 821. The processor offers 10% better performance over the previous model, Snapdragon 820. The chip will appear in consumer devices this fall, PC Mag reports.

TheStreet'sChris Versace and Bob Lang of Trifecta Stocks have identified Qualcomm as the "Chart of the Day." Here is what Versace and Lang had to say about the stock:

There is proof that a strong semiconductor sector bodes well for markets. We recently saw the positive divergence bloom, where the SMH (semiconductor holders index) performed substantially better than the rest of the market. This is indicative of institutional support for this group, money flows continue to be solid.

Qualcomm broke out strong in February and has been in a wide channel of consolidation since reaching in an interim peak in early March.

We see a nice W formation here on the daily chart as the Brexit drop was not violated but tested, a higher high on the chart.

The moving average convergence divergence (MACD) is about to flash a buy signal, and if strength from Intel and others is going to float all boats higher, we could see the May highs taken out very soon.

- Chris Versace and Bob Lang "Chart of the Day: Qualcomm" originally published on 7/11/16 on Trifecta Stocks.

Want more like this from Chris Versace and Bob Lang BEFORE your stock moves? Learn more about Trifecta Stocks now here.

(Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)

Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.

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, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.

You can view the full analysis from the report here: QCOM

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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