NEW YORK (TheStreet) --Qualcomm (QCOM) reported stronger than expected financial results for the 2016 third quarter after the market close on Wednesday.

The San Diego-based semiconductor company posted earnings of $1.28 per share on revenue of $6.2 billion. Wall Street was expecting earnings of $1.13 per share on revenue of $5.86 billion.

"It's one of my favorites; we have owned this for a long time. They're firing on all cylinders," Douglas C. Lane & Associates managing director and portfolio manager Sarat Sethi said during Thursday's "Fast Money Halftime Report" on CNBC.

Margins are up, all of Qualcomm's deals in China are nearly complete and the acquisition of NXP Semiconductors (NXPI) will be "great for diversification," Sethi added.

"They're going to be so well diversified especially now in the auto cycle, in the home, as well as in wireless. So that in effect is going to give them the next growth rate," he stated.

He called Qualcomm a "definite buy" because it trades 14 times earnings and has a 3% dividend yield.

"Even if they stay at 14 times earnings, but they can get high single-digit EPS growth, with a 3% dividend yield, I'd hold the stock for the next three to five years," Sethi said.

Shares of Qualcomm were higher in early afternoon trading on Thursday. 

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

Separately, 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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