Valuation analysis for QUALCOMM, Inc. (NASDAQ:QCOM)

Stock Traders Daily has initiated shares of QUALCOMM, Inc. (NASDAQ:QCOM) with a sell rating.  Ours is a value based observation comparing earnings growth to PE multiples to determine relative value and our assessments suggest that although Qualcomm's PE multiple does not look expensive to the naked eye, it certainly does when compared to the earnings growth results.

In addition, we are in a macroeconomic environment that will not favor stocks that have deteriorating earnings growth, which is the characteristic fitting Qualcomm at this time.  Our macroeconomic analysis is called The Investment Rate, and it suggests that natural demand for equities is declining and will continue to decline, and that means multiple contractions are likely, and when that happens investors look at stocks that are rich relative to their earnings growth rate through a different lens.

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We expect investors to scrutinize shares of Qualcomm even more than they have already and we expect additional declines as this year continues.

Technical Summary

Term →Near Mid Long
Bias Weak Neutral Neutral
P1 49.66 47.86 38.07
P2 50.49 52.53 46.10
P3 51.03 56.94 53.73

Long Term Trading Plans for QCOM

April 7, 2016, 10:37 am ET

The technical Summary and associated Trading Plans for QCOM listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for QCOM. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

QCOM - (Long) Support Plan

Buy over 46.10 target 53.73 stop loss @ 45.84.
The technical summary data tells us to buy QCOM near 46.10 with an upside target of 53.73. This data also tells us to set a stop loss @ 45.84 to protect against excessive loss in case the stock begins to move against the trade. 46.10 is the first level of support below 50.41 , and by rule, any test of support is a buy signal. In this case, support 46.10 is being tested, a buy signal would exist.

QCOM - (Short) Resistance Plan

Short under 53.73 target 46.10 stop loss @ 53.99
The technical summary data is suggesting a short of QCOM as it gets near 53.73 with a downside target of 46.10. We should have a stop loss in place at 53.99 though. 53.73 is the first level of resistance above 50.41, and by rule, any test of resistance is a short signal. In this case, if resistance 53.73 is being tested, a short signal would exist.

QCOM Long Term Analysis

QCOM EPS Analysis

QCOM Dividend Chart

QCOM Revenue chart

QCOM Growth rate - Quarterly

QCOM Growth rate - Yearly

QCOM PE chart

QCOM PEG chart