2 Ways to Trade Qualcomm Ahead of November's Earnings

Core Viewpoint - Qualcomm's stock has shown resilience, recovering to near the upper end of its recent range, with a 40% increase since April despite a brief pullback earlier this month [1][2] Group 1: Stock Performance - Qualcomm's shares closed at $168.83, marking a 1.07% increase [1] - The stock has been trading around the same levels as in 2021, indicating that the market has not fully rewarded its diversification and AI-driven products [2] - The stock has been stuck below a critical resistance zone near $180 for over a year, with a decisive break above this level being crucial for future momentum [6] Group 2: Technical Analysis - Qualcomm is maintaining an uptrend from the spring, with support around $155 reinforced by recent market rebounds [3] - The stock has a bullish reading of 55 on the RSI, suggesting that there is room for further gains [4] Group 3: Fundamental Analysis - Qualcomm's P/E ratio is approximately 16, significantly lower than peers like NVIDIA, indicating a compelling valuation [8] - The company has consistently beaten Wall Street expectations for earnings and revenue over the past two years [8] - Qualcomm is diversifying into connected vehicles, industrial IoT, and low-power edge computing, which are growing faster than its legacy handset business [7] Group 4: Investment Strategies - Option 1 suggests buying now, betting on Qualcomm's ability to beat expectations and capitalize on its expansion into automotive and IoT markets [9][10] - Option 2 recommends waiting for confirmation of strong earnings and a clean move above $180 to avoid potential volatility [11][12]