Qualcomm Inc. (QCOM): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Qualcomm ( QCOM) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.6%. By the end of trading, Qualcomm fell $1.60 (-2.4%) to $64.98 on heavy volume. Throughout the day, 23.8 million shares of Qualcomm exchanged hands as compared to its average daily volume of 11.8 million shares. The stock ranged in price between $64.74-$66.58 after having opened the day at $66.42 as compared to the previous trading day's close of $66.57. Other companies within the Technology sector that declined today were: Pulse Electronics ( PULS), down 28.1%, Hanwha SolarOne ( HSOL), down 17.8%, VirnetX ( VHC), down 15.3%, and SemiLEDs ( LEDS), down 15.1%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $114.69 billion and is part of the telecommunications industry. The company has a P/E ratio of 20, above the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Thursday. Currently there are 27 analysts that rate Qualcomm a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, DynaVox ( DVOX), up 16.1%, Glu Mobile ( GLUU), up 14.8%, LDK Solar Company ( LDK), up 13.6%, and Electro-Sensors ( ELSE), up 9.1%, were all gainers within the technology sector with Cisco Systems ( CSCO) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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