|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||104.52 - 105.11|
|52 Week Range||64.66 - 106.57|
|Beta (3Y Monthly)||1.74|
|PE Ratio (TTM)||19.68|
|Forward Dividend & Yield||1.48 (1.42%)|
|1y Target Est||122.86|
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of TDK Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Qualcomm (NASDAQ:QCOM) spent $1.15 billion to buy out the remainder of its partnership with Japan-based TDK Corporation (OTCMKTS:TTDKY). This takeover probably will not offer an immediate benefit to QCOM stock.Source: Akshdeep Kaur Raked / Shutterstock.com The alliance, valued at a total of $3.1 billion, produced RF front-end filters for 4G or 5G RFFE. Moreover, the company faces three significant threats that likely hold down the value of QCOM. However, this partnership involves one of the three factors that can help to negate these threats, and could even make Qualcomm stock a buy amid intense uncertainty. The Three ThreatsContinuing lawsuits with Apple (NASDAQ:AAPL) has weighed on QCOM stock for years. Just when the company settled with Apple, new legal scrutiny has come as the San Diego-based chipmaker faces a judgment in its lawsuit with the Federal Trade Commission.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor now, Qualcomm has won a partial stay on enforcing the ruling. However, if QCOM were to lose, they would likely have to renegotiate contracts on chipsets, possibly cutting into their profits. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Secondly, China. The People's Republic accounted for around two-thirds of revenue for Qualcomm in 2018. The U.S.-China trade war certainly presents issues. To have so much of one's revenue dependent on geopolitical events beyond its control could significantly hurt revenues.It could also lead to a potential competitor emerging if the dispute ultimately reduces or completely cuts off access in a worst-case scenario.Third, though this attracts surprisingly infrequent mention, the chart on QCOM stock looks ugly. It has traded in a range that has kept it between $45 per share and $90 per share for almost nine years. At the current $78 per share, it trades toward the high end of the range. Also, it has not yet surpassed the $100 per share top it saw in January 2000. Three Reasons to Ignore the ThreatsTo be sure, investors need to consider both the lawsuits and the trading history when considering a position in QCOM. That said, investors should also consider the positives. As discouraging as the problems appear, the reasons to overlook the issues with QCOM may look even more compelling.First, the company's multiple relative to growth. In a recent article, I said QCOM stock had a "low multiple relative to predicted 5G growth."Qualcomm has a forward price-to-earnings (PE) ratio of 18.5. Despite supporting a multiple below S&P 500 averages, the profit picture looks set to improve dramatically. Though profits will fall by 6% this year, a forecasted growth rate of 21.3% in 2020 should mark the beginning of an expected profit boom.Secondly, the company pays a stable, battle-tested dividend. The payout of $2.48 per share yields almost 3.2% at current prices. It has also increased every year since 2011. The increases also came every year despite the long-standing dispute with Apple that kept QCOM stock depressed.The third, and probably most compelling reason involves 5G, which probably ended the legal dispute with Apple. It also probably explains why QCOM bought out the remainder of the TDK partnership.As our own Faisal Humayan first pointed out, industry analysts predict the chipset market that will hit $2.1 billion in 2020 will grow to $23 billion by 2026. That level of growth should break the $90 per share and $100 per share price ceilings on QCOM stock. It could also make up for any doubts about lawsuits or China. The Case for QCOM stockThanks to 5G, the positives outweigh the negatives on QCOM. To be sure, the antitrust inquiry and China trade both pose threats to Qualcomm. These factors remain mainly outside of the company's control. The history of the stock also implies price ceilings at both the $90- and $100-per-share levels.However, thanks to the potential ten-plus fold growth in 5G chipsets, QCOM stock should move higher even if the antitrust suit or China trade policy does not go in their favor.Moreover, QCOM trades at a low valuation relative to profit growth. Once the company begins to sell 5G chipsets in earnest, Qualcomm stock should finally start to create new all-time highs again. Furthermore, the company has proven it can maintain dividend increases even when outside forces create tremendous pressure.When considering both the positives and negatives, QCOM stock remains a buy.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post 3 Legitimate Threats and 3 Reasons to Buy QCOM Stock Anyway appeared first on InvestorPlace.
Unsurprisingly, technology firm Qualcomm (NASDAQ:QCOM) is enjoy a strong year in 2019. After years of ugly legal battles with Apple (NASDAQ:AAPL) over patent disputes, the two giants settled their differences. Immediately, QCOM stock shot to the moon.Source: jejim / Shutterstock.com Of course, shares have settled down into their usual cadence, ebbing and flowing based on the news or interpretations of earnings reports. Still, Qualcomm stock is up 37% for the year. Outside of an extremely bearish news item, QCOM seems assured of closing out 2019 deep in the black.That said, some of the positive momentum appears to be waning. For instance, QCOM stock recently incurred three negative sessions in a row. And yesterday, Sept. 16, was particularly interesting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn this day, Qualcomm announced that it would buy the rest of its interest in RF360 Holdings, a joint venture between QCOM and TDK (OTCMKTS:TTDKY). RF360 specializes in RF front-end filters, which are necessary components in rolling out the 5G network. * 7 Tech Stocks You Should Avoid Now According to a statement from Qualcomm, the acquisition enables the organization to "deliver a truly complete solution" for mobile platforms. Theoretically, the news should lift Qualcomm stock. Thanks to rival Intel's (NASDAQ:INTC) bungled attempt at developing 5G modems, QCOM enjoys significant breathing room.Unfortunately, that's not how the markets viewed things. Instead, QCOM stock slipped about 0.5% in the Monday session.This is hardly a time to panic. Nevertheless, it is interesting that despite having a clear advantage in the 5G arena, Qualcomm stock has not been able to capitalize on it recently. Still, I wouldn't give up on this compelling tech opportunity. Nearer-Term Concerns Conflict with Longer-Term NarrativeJust as it's not surprising that QCOM stock is having an outstanding year overall, it's also no mystery why shares have recently slowed.Primarily, the ongoing U.S.-China trade war puts a damper on most industries. More worryingly, some economic experts have voiced their concerns that the trade war could drag on for years. Such a scenario is especially problematic for Qualcomm stock. The San Diego-headquartered tech firm generates about 65% of its revenue from China.Moreover, troubles in Europe, such as Brexit and Germany teetering toward recession, weigh on global markets. Logically, if Europe's biggest economic powers hit choppy waters, it doesn't bode well for the rest of the continent. Also, such a negative development hurts broader consumer demand.After all, 5G-ready phones are rare. And if you really want one, you're going to have to pay a pretty penny. According to CNBC, you're looking at $1,300 for a Samsung Galaxy S10+ 5G, which runs on Qualcomm's current Snapdragon 8 platform.Moreover, the 5G rollout has only occurred in limited locations. Thus, if you're not in one of those areas, you're out of luck. In the here and now, these nearer-term concerns weigh on QCOM stock.That said, speculators may want to advantage these lulls in the pricing dynamics for Qualcomm stock. The tech firm is hard at work in not only driving innovation, but also toward implementing cost efficiencies. Earlier this month, management announced that they're developing 5G platforms for less expensive phones.Just as importantly, this news item coincides with telecom giants AT&T (NYSE:T) and Verizon (NYSE:VZ) committing to developing 5G infrastructures in dozens of major U.S. cities. Thus, the tech-based fundamentals for QCOM stock are lagging the underlying infrastructure. But by the end of next year, this situation should resolve itself. Geopolitics Favor QCOM StockUnderstandably, many investors are leery about tech names. That sentiment would only be amplified during a recession.But even here, I think Qualcomm stock has some safety measures. Amid the natural capitalistic drive to develop 5G technologies, a geopolitical motivation exists as well. Like it or not, we're embroiled in a tech cold war with our adversaries, primarily Russia and China.Everyone is seeking to gain an edge here. Tomorrow's wars may not be kinetic but instead digital. As such, America's brightest tech firms dominating the landscape isn't just a matter of pride; it's also a matter of national security.Thus, when push comes to shove, I see federal oversight and regulation as less of a concern. While enforcing privacy and antitrust laws are important, they pale in comparison to potentially losing the tech cold war. It's just another factor to keep in mind if you're considering QCOM stock.As of this writing, Josh Enomoto is long AT&T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Be Patient When Considering Qualcomm Stock appeared first on InvestorPlace.
Qualcomm (NASDAQ:QCOM) shareholders can't complain about the performance of Qualcomm stock so far in 2019. Up 41% year to date through Sept. 13, including dividends, investors are likely taking some profits. Source: jejim / Shutterstock.com If you are, congrats on the gains. If not, here are three reasons why Qualcomm stock remains an excellent long-term buy. 1\. Free Cash Flow GenerationOver the summer, I had the opportunity to write about QCOM stock on two occasions in June and July. In the first article in June, I highlighted the company's strong free cash flow generation. InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result of its trailing 12-month free cash flow, I felt that it was an $80 stock, not a $60 stock. At the time it was trading just under $70. As I write this, Qualcomm is trading around $78, up more than 12% over the past 90 days. * 7 Tech Stocks You Should Avoid Now Its TTM free cash flow was $4.9 billion, considerably higher than the $2.1 billion when I wrote about the company in June. That's due to a $3.0 billion income-tax benefit through the first nine months of the fiscal year. InvestorPlace contributor Mark Hake recently suggested that Qualcomm will generate more than $7 billion in free cash flow in 2019, reminding investors that its free cash flow yield (FCF) of 7.5% is three times Amazon's (NASDAQ:AMZN) FCF yield of 2.5%. Free cash flow generation and FCF growth are the biggest drivers of higher stock prices. Although a big chunk of Qualcomm's fiscal 2019 free cash flow is a result of a considerable tax benefit, the company consistently generates more than $5 billion in free cash flow with or without those one-time benefits. This reason alone it's worth owning QCOM for the long haul. 2\. Great DividendQualcomm currently yields 3.2%, a fantastic amount of income for a tech company. InvestorPlace's Luke Lango recently called it a stable dividend stock to buy as fixed income possibilities vanish. However, not only did Lango promote the company's attractiveness as an income-generating stock, but he also suggested that it's on the cusp of a multi-year growth spurt, which would also deliver significant capital appreciation. "Not only does QCOM stock have a compelling multi-year bull thesis, but the stock is also paying investors to buy into that compelling bull thesis. It's a win-win situation that ultimately gives QCOM the nod as a stable dividend stock to buy here and now," he wrote. Not only did Qualcomm get as much as $4.7 billion as part of its settlement with Apple (NASDAQ:AAPL), but it also gets the maker of iPhones as a customer for several more years, which itself will generate future revenues. To be paid to go along for the ride is great news if you're a dividend income investor. 3\. 5G Will Be Good for QCOM StockQualcomm just announced that it was buying out the rest of RF360, the joint venture between it and TDK (OTCMKTS:TTDKY), a partnership set up to strengthen Qualcomm's RF business and help it transition to 5G. The company ultimately paid $3.1 billion, which includes the remaining $1.15 billion interest it's bought from TDK."Qualcomm Technologies' second-generation RFFE solutions for its 5G portfolio will further enable OEM customers to design thin, high-performance, battery-efficient 5G multimode devices at scale and on time," the company stated in its press release. As InvestorPlace contributor Josh Enomoto and Faisal Humayun have argued in recent articles, Qualcomm is ready to benefit from the move to 5G in 2020. Faisal points out that the global 5G chipset market is expected to grow from $2.1 billion in 2020 to $23 billion in 2026, a compound annual growth rate of 61%. Enomoto wrote that Qualcomm's headstart when it comes to 5G gives it a front-row seat to the changes taking place in the telecom industry -- a position that will ultimately generate billions in profits for Qualcomm shareholders. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post 3 Reasons QCOM Stock Is a Great Buy on the Recent Dip appeared first on InvestorPlace.
QUALCOMM, Inc. (NASDAQ: QCOM ) said Monday it has completed the acquisition of the remaining interest in RF360 Holdings Singapore Pte. Ltd., a joint venture with TDK Corporation. TDK Electronics' remaining ...
Qualcomm Inc. said Monday that it was buying the remaining interest in RF360 Holdings Singapore Pte. Ltd., which makes RF frong-end filters. RF360 is a joint venture with Tokyo-based TDK Corp. , with TDK's remaining interest valued at $1.15 billion in August. Qualcomm's stock slipped 0.9% in premarket trading. Qualcomm said the total purchase price, including the initial investment, payments to TDK and development obligations will be about $3.1 billion. Qualcomm said the acquisition strengthens its RF business and helps support the transition to 5G. "Our goal in the formation of this joint venture was to enhance Qualcomm Technologies' front-end solutions to enable us to deliver a truly complete solution to the mobile device ecosystem, and we have done exactly that," said Qualcomm President Cristiano Amon. Qualcomm's stock has soared 37.8% year to date through Friday, while the S&P 500 has gained 20.0%.
-- Strengthens RF Business to Drive 5G Era and Paves Way for Future Growth -- SAN DIEGO , Sept. 16, 2019 /PRNewswire/ -- Qualcomm Incorporated (NASDAQ: QCOM) announced a significant milestone in its 5G ...
TDK Corporation (TTDKY) seems to be a good value pick, as it has impressive value metrics, and is seeing solid earnings estimate revisions as well.
Moody's Japan K.K. has affirmed TDK Corporation's (TDK) A3 issuer rating. "We expect TDK's leverage will return to lower levels within the year as the company pays down debt with proceeds from an impending asset sale," says Takashi Akimoto, a Moody's Assistant Vice President and Analyst. TDK is in an agreement with QUALCOMM Incorporated (Qualcomm, A2 negative) to sell its smartphone components joint venture to Qualcomm in two parts.