Can A New Device Help Boost Qualcomm’s Stock?

With shares of Qualcomm (NASDAQ:QCOM) trading around $67, is QCOM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Qualcomm is engaged in the design and manufacturing of digital communications products and services. The company operates in four segments: Qualcomm CDMA technologies, Qualcomm technology licensing, Qualcomm wireless and Internet, and Qualcomm strategic initiatives. It develops and supplies integrated circuits and system software based on CDMA, OFDMA, and other technologies for uses in voice and data communications, networking, application processing, multimedia, and global positioning system products.

The mobile industry has been hot in recent years and looks to continue as countries worldwide keep developing and demanding these products. As an increasing number of consumers and companies engage at rising rates with their mobile devices, look for Qualcomm to be a leading provider of these essential products.

Qualcomm is joining Samsung (SSNLF.PK) in the smart watch game. Samsung debuted its Galaxy Gear wearable device Wednesday, and though it received less media attention, Qualcomm also introduced a similar device, called Toq. Qualcomm’s device is similar to Samsung’s in that it syncs with a user’s smartphone to show texts and emails without the inconvenience of having to take your phone out of your pocket. Toq currently only works with Google’s (NASDAQ:GOOG) Android operating system, but the company is considering making the device Apple (NASDAQ:AAPL) iOS-compatible as well.

T = Technicals on the Stock Chart Are Strong

Qualcomm stock has been trending higher over the last few quarters. The stock is currently testing multiyear high prices, so it may need a little time at these price levels. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Qualcomm is trading above its rising key averages, which signals neutral to bullish price action in the near term.


Source: Thinkorswim