Qualcomm Incorporated (QCOM) recently took the market by storm with the launch of the Snapdragon X chip for mid-range AI (artificial intelligence) desktops and laptops. This SoC (system-on-chip) is the fourth such product in the Snapdragon X processor line, following the successful launch of the Snapdragon X Plus 8-core, Snapdragon X Plus and Snapdragon X Elite series.Based on a 4-nanometer process, the Snapdragon X chip comprises an 8-core Oryon central processor, a graphics component and a neural processi ...

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Qualcomm Technologies, Inc. (QCOM) and Tata Elxsi, Inc. are set to collaborate to create virtual models of the Snapdragon Digital Chassis for cloud-native automotive application development and drive the adoption of software-defined vehicle technology. Tata Elxsi is a prominent provider of designs and technology services across several sectors, including automotive, transportation, healthcare, telecommunication and more. The partnership of QCOM and Tata Elxsi is putting a strong emphasis on the implementati ...

Zacks Rating Upgrade for Qualcomm - Qualcomm has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system is based on a company's changing earnings picture, specifically the Zacks Consensus Estimate for current and future years [1] - The upgrade indicates a positive earnings outlook for Qualcomm, which could favorably impact its stock price [3] Earnings Estimate Revisions and Stock Price Correlation - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate fair value, leading to bulk investment actions that drive stock price movements [4] - For Qualcomm, rising earnings estimates and the rating upgrade signify an improvement in the company's underlying business, which should push the stock higher [5] Zacks Rank System and Earnings Estimate Revisions - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - Tracking earnings estimate revisions can be rewarding, as empirical research shows a strong correlation with near-term stock movements [6] - Qualcomm's placement in the top 20% of Zacks-covered stocks indicates superior earnings estimate revisions, making it a solid candidate for market-beating returns [10] Qualcomm's Earnings Estimate Revisions - For the fiscal year ending September 2025, Qualcomm is expected to earn $11.14 per share, a 9% increase from the year-ago reported number [8] - Over the past three months, the Zacks Consensus Estimate for Qualcomm has increased by 4.1% [8] Zacks Rating System Overview - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating [9] - Qualcomm's upgrade to Zacks Rank 2 positions it in the top 20% of Zacks-covered stocks, implying potential for near-term stock price appreciation [10]

Investment Strategy - The focus is on companies with a defensible competitive advantage and business models that can generate significant operational leverage [2] - The approach involves identifying small companies with high growth potential, aiming for multi-bagger returns while mitigating risks through a diversified portfolio [3] - The strategy includes a buy-and-hold approach with tranche purchases of stocks of interest, along with an illustrative portfolio, buy alerts, and market updates [5] Service Offering - The service provides real-time buy and sell signals, as well as other trading opportunities, through an active chat community [2] - It offers a marketplace service called SHU Growth Portfolio, which includes a portfolio and watchlist of small, high-growth potential stocks [4] - The service features wide coverage of small companies with high growth possibilities, along with weekend stock and market updates and a chat room [5]

Stock Performance and Price Targets - Qualcomm (QCOM) closed at $159 36, gaining 1 6% over the past four weeks [1] - The mean price target of $204 69 indicates a 28 5% upside potential [1] - The average price target comprises 26 short-term targets ranging from $160 to $270, with a standard deviation of $27 43 [9] - The lowest estimate suggests a 0 4% increase, while the most optimistic estimate points to a 69 4% upside [9] Earnings Estimate Revisions - One estimate has moved higher over the last 30 days, with no negative revisions, leading to a 0 5% increase in the Zacks Consensus Estimate [7] - Analysts' growing optimism over the company's earnings prospects is indicated by strong agreement in revising EPS estimates higher [11] - Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements [11] Analysts' Price Targets and Their Reliability - Analysts often set inflated price targets due to business incentives, such as existing relationships or the desire to be associated with the company [3] - Price targets are one of many pieces of information that can mislead investors more often than guide them [5] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts about the stock's direction and magnitude of movement [6] - While the consensus price target may not be a reliable indicator of potential gains, the implied direction of price movement appears to be a good guide [8] Zacks Rank and Stock Potential - QCOM currently has a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 stocks ranked based on earnings estimates [12] - The Zacks Rank, with an impressive externally-audited track record, is a more conclusive indication of the stock's potential upside in the near term [12]

Disclosure and Affiliation - Parkev Tatevosian, CFA has no position in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends Qualcomm [1] - Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services [1] - If subscribers choose to subscribe through his link, he will earn extra money that supports his channel [1] - His opinions remain his own and are unaffected by The Motley Fool [1]

Valuation Metrics and Rankings - Qualcomm (QCOM) has a forward P/E ratio of 13.72, while Motorola (MSI) has a forward P/E of 34.39 [2] - QCOM's PEG ratio is 2.09, compared to MSI's PEG ratio of 3.41 [2] - QCOM has a P/B ratio of 6.48, significantly lower than MSI's P/B ratio of 58.47 [6] - QCOM holds a Value grade of B, while MSI has a Value grade of D [4] Earnings and Investment Potential - QCOM has a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while MSI has a Zacks Rank of 3 (Hold) [5] - QCOM has seen stronger estimate revision activity and sports more attractive valuation metrics than MSI, making it a superior option for value investors [9] Industry and Stock Selection - The Wireless Equipment sector includes Qualcomm (QCOM) and Motorola (MSI), with QCOM offering better value for investors [7] - Value investors use traditional metrics like P/E ratio, P/S ratio, earnings yield, and cash flow per share to identify undervalued stocks [3][8]

Qualcomm Incorporated QCOM shares settled higher during Friday's session.Qualcomm bagged a key win in its legal battle against semiconductor design company Arm Holdings plc ARM. A federal jury in Delaware ruled that Qualcomm did not violate its licensing agreement with Arm, clearing a hurdle for the San Diego, California headquartered chipmaker.With the recent buzz around Qualcomm, some investors may be eyeing potential gains from the company's dividends, too. As of now, Qualcomm offers an annual dividend y ...

This business has demonstrated an ability to innovate across several categories.*Stock prices used were the afternoon prices of Dec. 19, 2024. The video was published on Dec. 21, 2024. ...