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

Qualcomm (QCOM), a fabless semiconductor company, is highlighted as a potential growth stock, holding a Zacks Rank #3 (Hold) but boasting a 'B' Growth Style Score and 'B' VGM Score. The company is projected for 16.3% year-over-year earnings growth in the current fiscal year, supported by an upward revision in its 2025 earnings estimate to $11.89 per share and a historical average earnings surprise of +6.2%, suggesting it warrants consideration for growth-focused portfolios.

Analysis

Qualcomm (QCOM) presents a nuanced but positive profile based on proprietary analyst ratings, positioning it as a stock of interest for growth investors. Despite carrying a neutral Zacks Rank #3 (Hold), its underlying fundamentals appear robust, earning a 'B' grade for its Growth Style Score and its overall VGM (Value, Growth, Momentum) Score. The primary catalyst for this view is the forecast for 16.3% year-over-year earnings growth in the current fiscal year. This forward-looking optimism is reinforced by a recent, albeit marginal, upward revision to the fiscal 2025 Zacks Consensus Estimate, which has increased by $0.01 to $11.89 per share. Furthermore, the company has a demonstrated history of exceeding market expectations, evidenced by an average positive earnings surprise of 6.2%. This combination of a strong growth outlook and a consistent record of earnings beats suggests fundamental strength that may not be fully reflected in its current neutral rating.

Key Decisions for Investors

• Growth-oriented investors should consider QCOM's projected 16.3% YoY earnings growth and its 'B' Growth Score as a key positive signal, warranting its placement on a watchlist for growth-focused portfolios.
• Given the neutral Zacks #3 'Hold' rating, it is prudent to monitor for further upward revisions to earnings estimates, as this is a primary driver of the rating system and could signal a catalyst for price appreciation.
• The company's consistent history of beating earnings, with an average surprise of +6.2%, provides a degree of confidence, suggesting that existing positions could be held while new investors might look for entry points, contingent on their own risk tolerance and further due diligence.