Tuesday, March 19, 2013

"Qualcomm, symbol QCOM, is a great company with some short-term slowing earnings growth, but still a great buy."

Dow Jones Industrial Average 14,514.11  (UP) Week ending 03-15-2013

Qualcomm Inc., (Symbol QCOM, $64.98), is a no-nonsense, rock solid company and is a good holding to have in your portfolio with the stock market making new highs. The company has a Return on Equity of 20.44% and a favorable PEG ratio of 0.87. After having a 3 year Total Return on the stock of 66.84%, the one year Total return has been (-0.36%) so it has not risen in the current year.  

There seems to be some short-term slowing of earnings growth, because of the transition from 3G phones to 4G phones and some reduction in margin with that change. You will still have earnings per share for 2013 of $4.50 per share and 2014 earnings per share of $4.87 per share.
The forward PE is 14.32.

You have a company here with 19.1 Billion dollars in sales last year with a current dividend yield of 1.54%. 

Qualcomm 5 year Sales growth has averaged 14.32% and 5 year Earnings growth has been at an annual rate of 16.87%. So what do the analysts think?

There are 34 Strong Buy recommendations and 5 overweight recommendations.  That is a good vote of confidence.  I see a stock here that can go to $75 to $85 dollars per share if you have a little patience with it. 

So, what's new?  BOSTON, March 19, 2013 /PRNewswire/ -- "Qualcomm's new "RF360," a revolutionary family of RF front-end cellphone products including multiband CMOS PAs, marks the company's entry into the $5 billion cellular RF front-end component market, as explored in the new Strategy Analytics report "PA Market in Flux: CMOS PAs and Envelope Tracking Emerge as Major Themes at MWC 2013." The report evaluates Qualcomm's RF360 in the context of new developments in power management and high-efficiency multiband power amplifiers by established PA suppliers, other chipset suppliers and power management IC specialists."    They are always moving ahead with new ideas and products. 

Buy it today!   QCOM              Freewilly

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