Should you buy Qualcomm shares after record Q2 results?

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The beaten down semiconductor stocks still have quality names that investors can own at a reasonable price right now, says Odyssey Capital Advisors’ Jason Snipe.

Snipe bought shares of Qualcomm Inc

One such stock that pops out to him in the semi space is Qualcomm Inc (NASDAQ: QCOM), down 20% for the year at present. Explaining why he loaded up on QCOM, Snipe said on CNBC’s “Halftime Report”:

Qualcomm has done a great job diversifying away from the handset game. It is in autos now. They have the licensing business, litigation is behind them, and it’s trading at 11 times forward.

Also on Wednesday, the world’s 2nd largest automaker by sales, Volkswagen picked Qualcomm Inc to power its future self-driving vehicles. Wall Street has an average PT of $205 on the stock that represents a 35% upside from here.

Qualcomm topped estimates in Q2

Qualcomm reported record results for its fiscal second quarter last week that handily topped Wall Street expectations, which, as per Jason Snipe, is another reason to own the stock. He noted:

They had a strong print last week; EPS growth, beat on revenue, and strong guidance in this type of environment. So, I like Qualcomm here. I think it is reasonably priced, strong valuation. So, there’s an opportunity.

Last month, DCLA’s Sarat Sethi also said Qualcomm was a depressed stock with a great balance sheet that screamed opportunity. The VanEck Semiconductor ETF is currently down 20% year-to-date.

The post Should you buy Qualcomm shares after record Q2 results? appeared first on Invezz.

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