|Bid||95.85 x 2200|
|Ask||95.90 x 1200|
|Day's Range||92.96 - 96.17|
|52 Week Range||49.10 - 96.17|
|Beta (5Y Monthly)||1.64|
|PE Ratio (TTM)||26.72|
|Earnings Date||Feb 04, 2020|
|Forward Dividend & Yield||2.48 (2.70%)|
|Ex-Dividend Date||Dec 02, 2019|
|1y Target Est||98.45|
The Dow eked out a gain Friday to stretch its winning streak to a fifth day. Encouraging economic data from the U.S. and China lifted investor sentiment. Homebuilding in the U.S. surged to a 13-year high in December, and China's industrial output, investment and retail sales rose more than expected last month. The data helped drive the three indexes to new highs. The S&P 500 up nearly four-tenths percent. For the week, the indexes rose roughly 2%. Mercadien Asset Management president, Ken Kamen: SOUNDBITE: MERCADIEN ASSET MANAGEMENT PRESIDENT, KEN KAMEN (ENGLISH) SAYING: "The consumer's very strong. So I think there's a lot of reason for optimism, and the markets' kind of fueling that." Shares of China sensitive chipmaker Qualcomm shot higher. Citigroup upgraded the chipmaker to "buy" from "neutral," citing among other factors, the likelihood that Qualcomm will gain market share in China with its 5G chipsets. Financial stocks including JPMorgan and Citizens Financial were among the rally leaders. A 61% surge in quarterly profit at the custodian bank, State Street, spurred the buying. Energy stocks were the day's biggest decliners. Shares of oilfield service provider Schlumberger slid even though its adjusted earnings beat Wall Street's targets The markets will be closed Monday for the Martin Luther King holiday.
Start up company Mojo Vision is creating AR contract lenses that allow users to project images on the retina. Yahoo Finance’s On The Move panel discusses.
Analysts expect earnings at S&P 500 companies to drop 0.8% in the fourth quarter, but forecast a 5.8% rise in the first quarter of 2020, according to Refinitiv IBES data. Billionaire David Tepper, who founded hedge fund Appaloosa Management, told CNBC that he remains bullish on U.S. equities. The Dow Jones Industrial Average rose 0.17% to end at 29,348.1 points, while the S&P 500 gained 0.39% to 3,329.62.
Once again, we’re heading into earnings season. All publicly traded companies are required by law to disclose their revenues, earnings, and other financial data quarterly, and the reports generally start coming in a few weeks after each calendar quarter ends. And now it’s time for the Q4 2019 reports to start coming in.Earnings season always generates a spate of analyst predictions, and this time is no different. Looking back, market watchers note that 2019 saw a series of lackluster quarters – that nevertheless did not impede stock performance. Companies compensated by reducing their forward guidance and then clearing that lower bar.So far, it seems that this is likely to happen once again. Bank of America’s securities strategists wrote, “We expect to see a 2% beat in 4Q earnings. Estimates have reset sufficiently, in our view.” At the same time, analysts are expecting stock prices to continue rising, with any pullback likely to be both shallow and short-lived.Ahead of the earnings releases, three market giants have received recent upgrades or price-target hikes from top analysts. Rating upgrades are important, as they indicate a positive change in the likely direction a stock will take – and their timing is important, too, as an upgrade shortly before an earnings release will push investor expectations. Using TipRanks' Stock Comparison tool, we lined up the three alongside each other to give us an idea of what the Street thinks is in store for the trio in the year ahead. American Electric Power (AEP)American Electric Power is one of the largest electricity providers in the country, with over 5 million customers in 11 states, some 26,000 megawatts of generating capacity, and a market cap of $47 billion. AEP is scheduled to release fourth-quarter earnings on February 20.Ahead of the print, the company is expected to show EPS of 62 cents, down 10 cents from Q4 2018. In the last three quarters, AEP has beaten the forecasts by an average of 6.7%. For the full year 2019, EPS is estimated at $4.18. In Q3 2019, the last reported, AEP showed strong results. The Q3 EPS, $1.46, was far ahead of the $1.33 predicted.Like many utilities, AEP pays out a dividend to shareholders. The 70-cent quarterly payment annualizes to $2.80, with a yield of 2.9%. This beats the average S&P yield by a wide margin, and makes the stock more attractive despite a relatively low upside potential (more below). Better for investors, the company has a history of steadily increasing the dividend, and at 48%, the payout ratio indicates both sustainability and room for further dividend growth.A reliable business base and solid earnings gave Shelby Tucker, 4-star analyst with RBC Capital, reason to upgrade his rating and price target on AEP. In his comments on the stock, Tucker pointed out the “robust rate base and earnings growth,” and noted, “We view AEP as having best value in the same peer group of quality utilities and see it trading at an improved multiple.”Tucker moved his rating up to Buy, and increased his price to $103 (from $96). His new target suggests a modest, but likely reliable, upside of 5% for the stock. (To watch Tucker’s track record, click here)All in all, American Electric has a Moderate Buy rating from the analyst consensus. This is based on 9 recent stock reviews, including 5 Buys, 3 Holds, and 1 Sell. Tucker’s upgraded Buy is the most recent of those ratings. Shares have an average price target of $97.25; this implies a minimal downside from the $98.55 trading price. (See American Electric stock analysis at TipRanks)Apple, Inc. (AAPL)Apple needs no introduction. Tim Cook's baby is a giant in every sense of the word. It is the world’s largest publicly traded company, and in summer of 2018 was the first company to every exceed a $1 trillion market cap. Apple is currently valued at $1.37 trillion. The company has a reliable – and loyal – customer base over 900 million strong, and saw over $265 billion in revenue in 2018.2019 was challenging for Apple. A series of headwinds – the US-China trade tensions, maturation of the smartphone replacement cycle, slowing iPhone sales – combined to push earnings down and forced management to seek alternate strategies to maintain revenue growth. During the year, Apple shifted toward an emphasis on its Services and Wearables segments, along with revamping the Mac and iPad lines, to compensate for the decline in iPhone sales, and that strategy is bearing fruit. Outside factors – the switch to 5G, with its concomitant necessity for customers to upgrade devices, and the apparent success of President Trump’s tariff strategy in forcing China into trade negotiations – are also looking better for Apple as 2020 opens.Q3 2019 showed that Apple’s new strategy is working. While iPhone sales were lower than expected, 18% growth in Services and 54% growth in Wearables powered an overall gain in total revenue, to $64 billion. The $3.03 EPS was 6.7% above the forecast.Looking ahead to Q4, analysts are sanguine. The final quarter is normally Apple’s strongest, and EPS is expected at $4.53. Since the December 2018 quarter, Apple has beaten earnings forecasts by increasing margins in each report.Canaccord analyst Michael Walkley sees plenty of reason for optimism as Apple gears up for its January 28 earnings release. He points out Apple’s market leading Wearables position, with strong growth in the Air Pods and Watch, and says as well, “We believe Apple’s ecosystem approach, including an installed base that exceeds 1.4B devices globally, is leading to record services revenue, and we expect the higher margin services revenue growth to continue outpacing total company growth. We are also encouraged by the strong demand for the iPhone 11 lineup and believe Apple will maintain its market share leadership of premium-tier smartphones that could be bolstered by a 5G upgrade cycle.”Walkley upgraded Apple to a Buy, and set his price target at $355, implying an upside of 11%. (To watch Walkley’s track record, click here)Overall, Apple’s 34 analyst ratings add up to a consensus view of Moderate Buy. The breakdown is 20 Buys, 11 holds, and 3 Sells. Apple’s rapid share appreciation in the past month has pushed the stock price above the average target, and the analysts have yet to adjust. Shares are selling for $318.73, while the average target is still at $296. (See Apple’s stock analysis at TipRanks)Qualcomm, Inc. (QCOM)It makes sense to talk about Qualcomm along with Apple. The chipmaker is Apple’s main supplier of smartphone modem chips, a factor that will be integral to both companies’ positioning in the global switch to 5G networks. In addition, Qualcomm and Apple ended a long-running legal battle last year with an agreed settlement that saw Qualcomm on the receiving end of a large – and undisclosed – lump sum.2019 was volatile for Qualcomm, as it was for much of the chip industry, but the company’s settlement with Apple and subsequent agreement to once again displace Intel as Apple’s prime modem chip supplier, gave the company a boost. QCOM shares ended the year with an impressive annual gain of 59%.In 2H19, QCOM saw gains when it beat earnings estimates in calendar Q3. Despite year-over-year drops, both the top and bottom lines exceeded forecasts. At the bottom line, the 78-cent EPS was well ahead of the Street’s 71-cent forecast, while the top-line $4.81 billion in revenues beat expectations by 2.3%. For calendar Q4 2019, QCOM is again expected to show a 71-cent EPS when the company reports on February 5.Canaccord’s Walkley, quoted above, looked at QCOM shares, too, and had this to say: “Given … 75 plus 5G licenses, we believe Qualcomm has a strong chance to maintain its current licensing business and is well positioned to benefit with 5G network builds ramping around the world. Further, we believe the recent Apple settlement and Samsung and LGE renegotiations protect a strong portion of Qualcomm’s long-term licensing business model.”In line with his optimism, Walkley reiterated his Buy rating on the stock and increased his price target to $115. His new price target suggests an upside potential of 20%. (To watch Walkley’s track record, click here)Qualcomm’s Moderate Buy consensus rating is based on 18 analyst reviews, including 12 Buys and 6 Holds. With shares trading for $95.91, the $99.41 average price target implies a modest upside of 4%. (See Qualcomm stock analysis at TipRanks)
The Dow Jones, up more than 500 points this week, hit another new high Friday along with the S&P; 500 and Nasdaq. Qualcomm surged in the Nasdaq 100.
The S&P 500 gained 0.21% to 3,323.61 and the Nasdaq Composite was up 0.05% at 9,362.01. Declining issues outnumbered advancers for a 1.06-to-1 ratio on the Nasdaq. The S&P index recorded 122 new 52-week highs and no new lows, while the Nasdaq recorded 186 new highs and nine new lows.
The Dow Jones Industrial Average rose 32 points, or 0.1%. The S&P 500 was up 0.2%, and the Nasdaq Composite rose less than 0.1%.
Shares of Qualcomm Inc. are up nearly 4% in Friday morning trading after Citi Research analyst Christopher Danely upgraded the stock to buy from neutral and upped his price target to $108 from $89. "We expect upside to both revenue and margins for Qualcomm going forward given share gains in 5G, higher [average selling prices], and increased royalty revenue," Danely wrote. While he's worried over the long run about declining royalty rates and Apple becoming more involved in its own chip process, he expects the 5G rush "will put these trends on hold for at least the next 12 months like in previous upgrade cycles." Shares have added 21% over the past three months, as the S&P 500 has risen 11%.
Back from the dead? That's what it feels like with Nvidia (NASDAQ:NVDA), as shares have erupted over the past few months and quarters. It's no secret that chip and semiconductor stocks are back in favor, but the resurgence in Nvidia stock is even more impressive given how hard it was hit.Source: Hairem / Shutterstock.com Coming into the fourth quarter of 2018, Nvidia stock was riding high. Investors had enjoyed a multi-year run in the stock that had returned roughly ten-fold on their early investment. The stock peaked at just over $290 per share, but then began to slip.The top came on Oct. 2. Because crypto-mining had inflated the company's top- and bottom-lines and those buyers suddenly vanished, it sent Nvidia into a tumultuous fall.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The Top 5 Dow Jones Stocks to Buy for 2020 Nvidia stock was going to get hit hard regardless during this time, as the S&P 500 and Nasdaq endured peak-to-trough declines of ~20% in less than three months. But Nvidia management had perhaps the worst timing possible to announce this negative crypto-related news. Shares ultimately fell more than 50% in just a few months.Is that all over now? Let's look at three reasons Nvidia may be back. GrowthPerhaps Nvidia's largest catalyst for a robust 2020 is a return to growth. The company has reported the first three quarters of fiscal 2020 already, with the last report likely due up in about a month.If the results are in-line, the company will report a ~8% decline in full-year sales and a ~16% decline in annual earnings. These figures are bad -- especially for a stock that's rallied 48% over the past six months -- and cap off a very disappointing 2019. But investors are unlikely to focus on the Q4 results, and instead focus on what's ahead.That's as consensus expectations call for a 19.1% rebound in growth and for earnings to grow 30.2% in fiscal 2021. It's obviously impossible to say whether Nvidia will beat or fall short of these estimates, but if management can deliver, it will represent record figures for both metics. Nvidia will officially be "back" if that's the case.As for looking beyond calendar 2020, there's no telling what roadblocks may lie in the way. All I can say is that, Nvidia is positioned in various secular growth trends and its products are literally the backbone to many of the services, automations and technologies that companies are and will continue to rely on in the future. Mellanox DealIn March, Nvidia announced it will acquire Mellanox for $125 per share in a $6.9 billion deal. In December, Nvidia received approval from the EU. China was the obvious worry when it came to approval, given that its silent treatment on Qualcomm (NASDAQ:QCOM) and NXP Semi (NASDAQ:NXPI) caused that deal to fall through.With the phase one trade deal now signed though, the hope by many is that Chinese regulators will be willing to play ball and sign off on the deal. Nvidia has recently said it expects the deal to close in early 2020.Why does this deal matter? Nvidia has said it expects the deal to be accretive to gross margins, earnings and free cash flow immediately after closing. That would help give a nice boost to an already improving situation. It will also be one more catalyst to take Nvidia stock higher. Nvidia Stock Chart Click to Enlarge Source: Chart courtesy of StockCharts.comIs Nvidia stock stretched? Well, let's just say that it's not exactly flying under the radar. The stock is up about $100 per share, or almost 70% from the August lows. Given that run, I wouldn't be surprised to see the stock hit "pause" at some point this year.That said, it's hard to bet against such a strong trend. After plunging below $190 in 2018, the stock tried several times to breakout over this level in 2019. It finally did so in October, while also reclaiming the 100-week moving average. The latter became support as Nvidia stock continued to grind higher.For now, the 10-week moving average continues to act as support, while the stock flirts with a breakout over $250. Ideally, we would get a pullback to uptrend support (blue line) and the 10-week moving average first. That way the stock can unwind some of its overbought condition and investors will get a chance to buy the dip.There are plenty of analysts getting bullish on the stock as well, with the latest calls ranging between $275 and $300 (shown via a blue box on the chart). In the past week, Nvidia stock has received a $300 target from four different analysts. So it's not as if just one or two bullish calls are being taken into consideration here.That doesn't mean Nvidia stock will get to $300 or that it will do so in the next month or two, but it's something to consider. As it stands right now, the technicals are another catalyst to the stock.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post 3 Reasons Nvidia Stock Could Be Set for a Monster 2020 appeared first on InvestorPlace.
Qualcomm and Comcast were early leaders, while American Express led the Dow Jones today, as analyst actions helped drive stocks higher Friday.
U.S. stock indexes were set to scale fresh record highs on Friday, on optimism over corporate earnings, fresh economic data and indications of resilience in a Chinese economy battered by a prolonged trade war with the United States. The three main stock indexes closed at record highs on Thursday, with the S&P 500 surging past the 3,300-mark for the first time, also boosted by a rally in technology stocks and strong U.S. retail sales data.
Qualcomm Incorporated (NASDAQ: QCOM) today announced a quarterly cash dividend of $0.62 per common share, payable on March 26, 2020, to stockholders of record at the close of business on March 5, 2020.
[Editor's note: "7 5G Stocks to Connect Your Portfolio To" was previously published in November 2019. It has since been updated to include the most relevant information available.]I have discussed the importance of various 5G stocks to buy before, but, of course, such a notion is nothing new. This latest telecom innovation represents a shift in the industry. Major players and even government bodies have pushed for 5G integration. But to truly understand the phenomenon behind 5G stocks, we should look back in time to the 4G upgrade.It's been more than a decade since the first 4G handset hit U.S. retail stores. Back then, we witnessed the same challenges that we must address today; namely, the lack of viable networks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the massive increase in data transmission speeds made efforts to overcome the challenges worthwhile. For instance, some early 4G networks download speeds of 100Mbps, substantially greater than an average 3G download speed of 2Mbps. That's the allure of 5G stocks.Moreover, think about the amazing technologies that either sprouted or were improved via 4G's introduction. For example, we take for granted today that we can hail a ride through Uber (NYSE:UBER) or Lyft (NASDAQ:LYFT). But the viability of this platform was really only possible through the 4G network. The same can be said about mobile streaming on services such as Netflix (NASDAQ:NFLX). * 7 Large-Cap Stocks to Give a Wide Berth In other words, 5G doesn't just offer an industry from which to pick stocks to buy. Instead, this technology enables other technologies to flourish. It's a force-multiplier, one that comes around only once every several years.With that, here are my seven picks for 5G stocks to buy: AT&T (T)Source: Lester Balajadia / Shutterstock.com AT&T (NYSE:T) is a name that almost everyone is familiar with. However, it doesn't get much love as a candidate for stocks to buy. Even though T stock represents an iconic brand, the underlying company has unprecedented debt levels from expensive acquisitions.Even worse, those acquisitions apparently aren't gaining satisfactory traction. Of course, I'm referring to the $85 billion Time Warner acquisition. Initially, AT&T bought the company on hopes of original content strength and streaming revenue opportunities. However, fears of AT&T cannibalizing itself has put off some investors from T stock.But with all due respect, I think this perspective is shortsighted, as signified by the recent AT&T rally. I believe AT&T is one of the best 5G stocks to buy. With the coming network rollout, it's not just about technological prowess; instead, the rollout will require massive resources and wide-ranging telecom assets.Few names have the capacity to integrate 5G competently. Although it has some big issues, T stock is one of those players. Qualcomm (QCOM)Source: Shutterstock Under almost any other circumstance, Qualcomm (NASDAQ:QCOM) would easily qualify as one of the best 5G stocks to buy. Thanks to its next-generation chips, Qualcomm has an early head start on this transformative telecom innovation. That right there is a good enough reason to seriously consider QCOM stock.However, legal troubles with Apple (NASDAQ:AAPL) have cast a dark cloud over QCOM stock.Typically, semiconductor firms sell licenses of their core technologies, but Qualcomm charges royalties on top of innovations that are only loosely associated with the initial license.After settling the suit last year, Qualcomm added about 50% to its stock price and has since marched steadily upward. * 10 Cheap Stocks to Buy Under $10 As I have argued in the past, tech firms have ceased to exist in a vacuum. Instead, we're in a tech cold war for future digital dominance. Therefore, I believe the future is bright for QCOM stock because, well, it has to be. Micron (MU)Source: Shutterstock Speaking of vacuums, the 5G industry itself doesn't ply its trade in isolation. Instead, you see natural synergies and partnerships to help make the most of the tech in the shortest time possible. That's why on your shopping list of 5G stocks to buy, you shouldn't overlook Micron Technology (NASDAQ:MU) and MU stock.Earlier this year, Micron and Qualcomm announced a partnership to develop 5G-enabled autonomous driving platforms. This is a great example of the far-reaching impact of 5G technologies. With exponentially faster transmission speeds, autonomous vehicles can more quickly transition from concept to reality. Additionally, 5G speeds should make such AVs safer as they can react to dynamic conditions or dangers.Another plus for MU stock is the geopolitical environment. Micron of all companies on my list of stocks to buy recognizes the economic threat that is China. After suffering sometimes brazen acts of corporate espionage, Micron realizes that American tech firms haven't played on equal ground with the Asian juggernaut.But thanks to the no-nonsense Trump administration, MU stock has some executive support. Moving forward, I like that measure of confidence. Nvidia (NVDA)Source: Shutterstock If you're a hardcore gamer, you typically associate Nvidia (NASDAQ:NVDA) with its gaming-centric graphics processors.However, the semiconductor firm has evolved into a comprehensive tech umbrella, providing solutions with data science, artificial intelligence, and deep learning. But what does this have to do with 5G stocks to buy?Simply, we're moving to a point now where no tech innovation occurs in isolation. Prior to 4G, most computerized solutions focused on data analytics and big data. But with 4G's data-transmission speed upgrade, engineers were able to realize multiple AI applications, such as AVs and other automated platforms. Since Nvidia leads in these innovations, NVDA stock provides attractive exposure. * 9 Up-and-Coming Small-Cap Stocks to Watch But with 5G, several industries are looking to take the next step in automation. In many cases, this means that companies are looking to replace human operators with AI-driven systems.Of course, such a notion is further out on the horizon. Still, I'd keep NVDA stock on my must-watch list, especially since shares are currently deflated relative to their all-time highs. Xilinx (XLNX)It's a theme that consistently runs throughout 5G stocks: no one player owns the entire 5G supply chain. Thus, part of the problem regarding the next-gen telecom rollout is the broader lack of equipment upgrades.Simply put, 5G requires multiple components, from the network down to the chips used to facilitate data transmissions.While it might not be a household name, 5G investors should check out Xilinx (NASDAQ:XLNX) and XLNX stock.For one thing, the company has introduced a groundbreaking chipset that covers the entire sub-6 GHz spectrum. This is essentially the radio frequency that makes 5G possible.Second, several 5G players already use Xilinx chips. That number will surely rise as the rollout deepens. Furthermore, Xilinx will likely pick up additional clients, making XLNX stock an attractive proposition.Finally, Xilinx offers critical solutions in growing and lucrative markets such as AI and data centers. Thus, no matter what happens with 5G, XLNX stock will likely benefit from robust demand. Ericsson (ERIC)Without any historical context, 5G investors would probably peg Ericsson (NASDAQ:ERIC) as one of their top stocks to buy.After all, Ericsson provides the communications equipment that makes the 5G rollout practically accessible. Therefore, ERIC stock is an easy buy.Of course, Ericsson's long-term price chart tells a different tale. During the tech bubble of the late 1990s to early 2000s, ERIC stock was a legitimate three-digit security. As we all know, the bursting of that bubble deflated virtually all tech players.Later, ERIC stock peaked around the $20 level before collapsing during the last major housing crisis and the Great Recession. With shares currently trading hands at under $10, I can understand the hesitation regarding holding the bag. * 4 Energy Stocks to Power the New Year However, Ericsson does have a major geopolitical tailwind in the form of the U.S.-China trade war. With Huawei at least temporarily out of the picture, Ericsson has an opportunity to take advantage. This is one of the riskier propositions among 5G stocks to buy. But if you can stomach it, ERIC stock offers an intriguing opportunity. Semtech (SMTC)Analog and mixed-signal semiconductor supplier Semtech (NASDAQ:SMTC) offers natural exposure to 5G, along with other lucrative segments like the Internet of Things, data centers, and mobility. That said, SMTC stock has seen better days. Shares enjoyed a solid start to the year before negative earnings revisions for the year attracted volatility.However, I believe the nearer-term volatility in SMTC stock is just a blip on the radar. For one thing, Semtech features very stable financials. It has a relatively small debt load relative to its cash holdings.Moreover, Semtech has delivered consistently positive earnings, leading to an equally consistent free cash flow. Thus, the company can respond to fresh opportunities without worrying about the financial impact.Second, the 5G network is bound to grow in both scope and complexity. Not only are individual companies racing for an edge, so too are countries. Such dynamics provide a pathway to profitability for SMTC stock, making the nearer-term noise just that: noise.As of this writing, Josh Enomoto was long T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 7 5G Stocks to Connect Your Portfolio To appeared first on InvestorPlace.
U.S. stock index futures hit new all-time highs on Friday, with investor optimism bolstered by an upbeat set of U.S. corporate earnings reports and indications of resilience in the Chinese economy. Optimism over a Phase 1 U.S.-China trade deal signed on Wednesday and recent upbeat data have raised hopes that the global economy may be picking up.
Qualcomm (NASDAQ:QCOM) stock price had a stellar 2019, as it was up about 59%. In the first two weeks of the new year, QCOM stock has extended that run, up another 3%.Source: nikkimeel / Shutterstock.com San Diego-based Qualcomm is the world's largest maker of mobile chipsets and wireless modems. It's expected to release Q1 2020 earnings results on Feb. 5. Ultimately, investors should always base their decisions on individual risk/return profiles. Yet due to the impressive increase in the QCOM share price, investors with paper profits may now want to ring the cash register. Those who do not own Qualcomm stock may consider buying into the company at any upcoming dip. What to Expect from QCOM Stock's Next EarningsThe chip giant is best known for the Snapdragon suite of system-on-chip (SoC) semiconductor products, which underpin smartphones. In 2019, as the leading supplier of mobile SoCs, weak smartphones sales have been a major concern for the company. Nonetheless, the QCOM shareholders have looked past the soft sales and pushed the stock price to a recent 52-week $94.11 high.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen the company reports Q1 earnings, analysts will analyze three segments: * QCT (Qualcomm CDMA Technologies): semiconductor business, about 60% of revenue; * QTL (Qualcomm Technology Licensing): licensing business, about 19% of revenue; and, * QSI (Qualcomm Strategic Initiatives): makes strategic investments, about 1% of revenue.Although QCT provides Qualcomm with most of the revenue through sale of mobile chipsets, wireless patents provide most of the profits. Put another way, QCOM stock's higher-margin licensing unit supports the growth of its lower-margin chipmaking business.Many other companies, including tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Samsung (OTCMKTS:SSNLF), that manufacture or use chips, need to obtain a license from QCOM. According to the company, revenues from Samsung constitute more than 10% of consolidated revenues. Similarly, revenues from Hon Hai Precision Industry, which trades as Foxconn Technology Group, and other suppliers to Apple, also constitute more than 10% of consolidated revenues.And the owners of QCOM stock will likely benefit from the continued reliance of these companies on Qualcomm's intellectual property as the Southern California chipmaker is one of the leaders on the 5G front, propelling earnings growth. Major 5G Player2020 will be the year when 5G wireless technology moves to the fore. And the fifth-generation infrastructure market is expected to grow at a compound annual growth rate (CAGR) of 30% in the first half of this new decade. * 7 Stocks That Are Screaming Buys Right Now If experience and past results act as a guide for the future, Qualcomm's success in earlier 3G and 4G mobile networks will help the stock increase its bottom line.The evolution means handsets must have new chipsets that are 5G-compatible. With the smartphone upgrade cycle that is underway, many users will be purchasing a 5G-compatible device. Qualcomm management is estimating that about 200 million of those will be shipped this year.In April 2019, Intel (NASDAQ:INTC) announced that it would be leaving the market for 5G chips for mobile phones. Intel's departure leaves Qualcomm to lead this segment. When Apple debuts three 5G compatible phones later in 2020, they will all run on QCOM modems. So, too, will the new Yoga 5G personal computer from Lenovo Group (OTCMKTS:LNVGY), recently unveiled with its QCOM chips.In other words, Qualcomm is in a strong position to benefit from 5G development in the coming quarters. Autonomous Driving and QCOM StockTo be sure, 5G has not really entered our daily lives yet. When it does, it is expected to improve the network capacity and connection speed significantly. During 2019 various providers and cell phone producers that have contributed to this project have started rolling out their products and services.In addition, other emerging technologies, such as artificial intelligence (AI) autonomous driving, will likely be affected in a very big way. Earlier in January, Qualcomm announced a computing system, dubbed Snapdragon Ride, for autonomous vehicles.Within the next three year, the company is getting ready offer a platform that will be able to handle a wide range of cloud-to-car activities related to autonomous driving.In other words, 5G is likely to open up new venues for Qualcomm as the company expands its portfolio to reach out to a wide range of customers. Should You BUY QCOM Stock Now?I have been a firm believer in Qualcomm stock for over a year, now. And fundamental reasons are likely to drive QCOM shares to higher levels in the coming months, too. The company will provide a significant part of the intellectual property that will be used to develop 5G communications standards.However, given the recent increase in the QCOM share price, I do not regard it as a value proposition at this point. I'd rather wait to see the various metrics to be released in the next earnings report before buying into the stock.Yet, if you are a long-term investors whose portfolio can weather daily swings in the market, you may want to sit through any potential volatility during the earnings season. * 10 Cheap Stocks to Buy Under $10 Alternatively, you may also consider hedging your position with covered calls. For example, Feb. 21 expiry ATM calls would offer investors some downside protection as well as enable them to participate in a potential up move following the earnings release.Finally, those investors who buy into QCOM share price now would also benefit from the current dividend yield of 2.7%. Income investors know that they can compound their returns through reinvesting dividends from high-yielding stocks. Qualcomm has a history of increasing dividends and it may not ba a surprise to hear that the board increases the dividend in 2020.Longer-term, I'd expect QCOM stock price to reach $125 in two to three years.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Up-and-Coming Small-Cap Stocks to Watch * 7 Energy Stocks to Buy on the Resurgence of the Oil Boom * 3 Standout Oil Services Stocks to Buy The post After a 62% Run-Up, Does it Make Sense to Buy Qualcomm Stock Now? appeared first on InvestorPlace.
As the saying goes, 90% of life is just showing up. Maybe that's why so many U.S. corporate bigwigs were on hand to help President Trump usher in a new era on U.S. and China trade.
Zacks Investment Ideas feature highlights: Verizon, Qualcomm, Broadcom, Intel and Skyworks Solutions
Will chips still lead the market rally? Taiwan Semiconductor reported mixed earnings, but 5G guidance was bullish for the chip industry and key customers Apple, AMD and Nvidia.