Group 1 - Qualcomm's stock has remained flat and underperformed compared to the S&P 500 since the last coverage [1] - The previous focus was on Q4-FY24 results and the performance of different segments [1] - Qualcomm held an investor day in 2024, indicating ongoing engagement with investors [1] Group 2 - The investment style emphasized by the company is GARP/Value, focusing on high-quality, reasonably priced businesses with strong growth potential [1] - The approach prioritizes fundamentals and seeks stocks trading at a discount to intrinsic value, with a clear margin of safety [1] - The long-term investment strategy aims for wealth accumulation through compounding over a period of 5-7 years while emphasizing downside protection [1]

Core Insights - Qualcomm has launched the Snapdragon X chip for mid-range AI desktops and laptops, marking a significant addition to its Snapdragon X processor line [1][2] - The Snapdragon X chip features an 8-core Oryon central processor and a neural processing unit (NPU) capable of 45 TOPS, aimed at enhancing AI capabilities in PCs [2][3] - Qualcomm is shifting focus from the slowing smartphone market to AI capabilities in laptops and desktops, aiming to diversify its revenue streams [5] Product Development - The Snapdragon X chip is based on a 4-nanometer process and includes components designed to accelerate AI workloads, making it suitable for Microsoft's AI-first vision for Windows hardware [2] - AI PCs powered by Snapdragon X are expected to launch at around $600, making them accessible to a broader audience [2][3] - The specialized hardware in AI PCs enhances features like personal assistants and task automation, while also improving battery life [3] Market Positioning - Qualcomm aims to compete with Intel's Core 5 120U processor in the mid-range PC market with its new AI chips [5] - The company is transitioning from a wireless communications firm to a connected processor company, focusing on intelligent edge solutions [6] - Qualcomm is experiencing growth in automotive revenues, which rose 68% to $899 million in Q4 fiscal 2024, driven by its Snapdragon Digital Chassis platform [8] Financial Performance - Qualcomm's stock has gained 15% over the past year, lagging behind the wireless equipment industry's growth of 29.5% [9] - Earnings estimates for fiscal 2025 have increased by 7.6% to $11.14, and for fiscal 2026, they have jumped 8.8% to $12.30, indicating positive market sentiment [11] - The company has a trailing four-quarter average earnings surprise of 7.6% and currently holds a Zacks Rank 2 (Buy), suggesting potential for further price appreciation [15]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial strength and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward trends in price or earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, which has shown a strong historical performance with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock Highlight: Qualcomm (QCOM) - Qualcomm is rated 2 (Buy) on the Zacks Rank with a VGM Score of B, making it a strong candidate for growth investors [12] - The company is projected to have a year-over-year earnings growth of 9% for the current fiscal year, supported by upward revisions in earnings estimates [12][13]

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 ...