QUALCOMM, Inc. (NASDAQ: QCOM) stock price closed at $78.70 on Friday, before long weekend and Memorial Day.
This is still 20% lower compared to its 5 years high price that QCOM stock hit in January, just 2 months before the crisis.
Just looking at these numbers one can say that there is still 20% increase left for Qualcomm stock before it goes back to all time high. But will the QCOM share manage to recover from March madness?
Here are QCOM stock Fundamentals
Even if it does recover the question remains if 20% is something you should chase around when there are some other, better options.
- Market Capitalization, $K—88,531,832
- Shares Outstanding, K—1,124,928
- Annual Sales, $—24,273 M
- Annual Income, $—4,386 M
- 60-Month Beta—1.36
- Price/Cash Flow—18.69
On the other hand, according to Wall Street analysts Qualcomm is in a great position to benefit from the long-term 5G investment cycle.
In the past the dispute with Apple created financial uncertainty around Qualcomm’s EPS growth because it threatened a significant portion of its every day revenue. In the past Apple was installing modems from Qualcomm Qualcomm in its iPhone smartphones, and for this service Qualcomm was getting $7.50 per mobile device, after rebates. Once the settlement of the dispute was finished outside the court room Qualcomm will now see Apple pay more than $4.5 billion to Qualcomm and
The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.source
Now that the dispute with Apple is settled and main competitor Intel (NASDAQ:INTC) announced leaving the 5G mobile modem business, Qualcomm has all it needs to continue its growth.
So, decision if you should sell QCOM stocks should be yours and just yours. Value investors buy cheap, unpopular shares and wait. Growth investors buy market darlings and get fast results or move on.