Wall Street Analysts Think Qualcomm (QCOM) Could Surge 28.45%: Read This Before Placing a Bet

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]