Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Qualcomm ( QCOM) as a pre-market laggard 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 $821.6 million.
  • QCOM traded 18,275 shares today in the pre-market hours as of 7:35 AM.
  • QCOM is down 2.4% today from yesterday's close.

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More details on QCOM:

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, and the United States. The stock currently has a dividend yield of 2.4%. QCOM has a PE ratio of 14.7. Currently there are 14 analysts that rate Qualcomm a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Qualcomm has been 13.2 million shares per day over the past 30 days. Qualcomm has a market cap of $114.4 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.30 and a short float of 1.2% with 1.54 days to cover. Shares are down 6.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • QCOM's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • QCOM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.13, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Communications Equipment industry and the overall market, QUALCOMM INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • QUALCOMM INC has improved earnings per share by 39.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, QUALCOMM INC increased its bottom line by earning $4.40 versus $3.91 in the prior year. This year, the market expects an improvement in earnings ($5.01 versus $4.40).
  • The gross profit margin for QUALCOMM INC is rather high; currently it is at 62.07%. Regardless of QCOM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, QCOM's net profit margin of 27.77% compares favorably to the industry average.

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