Why Qualcomm (QCOM) is a Top Growth Stock for the Long-Term

Zacks Investment Research outlines its stock selection methodology, combining the proprietary Zacks Rank, which has a strong track record, with complementary A/B-rated Style Scores (Value, Growth, Momentum, VGM) to identify high-potential equities. The article highlights Qualcomm (QCOM) as a compelling growth prospect, despite its Zacks #3 (Hold) Rank, citing its B VGM and Growth Style Scores, a projected 16.1% year-over-year earnings growth for the current fiscal year, and recent upward revisions to its FY2025 earnings estimate, now at $11.86 per share.

Analysis

Qualcomm (QCOM) presents a compelling case for growth-oriented investors, according to the provided research, despite its neutral Zacks Rank of #3 (Hold). The positive thesis is supported by strong secondary indicators, including a 'B' rating for both its overall VGM Score and its specific Growth Style Score. Fundamentally, the outlook is underpinned by a forecast of 16.1% year-over-year earnings growth for the current fiscal year. Analyst sentiment appears to be improving, evidenced by seven upward earnings estimate revisions for fiscal 2025 within the last 60 days, which has lifted the Zacks Consensus Estimate to $11.86 per share. This positive outlook is further supported by the company's consistent history of outperformance, boasting an average earnings surprise of +6.2%. While the sentiment score for QCOM is extremely positive (0.85), the analysis is framed within a promotional piece for a research service, and the overall market impact score of 0.35 suggests this specific article is unlikely to be a significant market-moving catalyst on its own.

Key Decisions for Investors

• Growth-focused investors should consider Qualcomm's projected 16.1% YoY earnings growth and the recent upward revisions to its FY2025 consensus estimate as key positive fundamental signals.
• It is crucial to weigh the article's bullish narrative against the stock's official Zacks Rank of #3 (Hold), which tempers the immediate outlook and suggests a balanced approach rather than an aggressive entry.
• Monitor upcoming earnings reports to validate the growth thesis, specifically watching for continued performance above expectations given the company's historical +6.2% average earnings surprise.
• Given the analysis originates from a single research firm's proprietary model, these insights should be used as a component of a broader due diligence process, not as a standalone investment trigger.