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

Qualcomm (QCOM), a fabless semiconductor company, is highlighted by Zacks as a notable stock for momentum investors, despite its current Zacks Rank #3 (Hold). The company boasts a strong 'B' Momentum Style Score and 'B' VGM Score, supported by a 1.7% share price increase over the past four weeks. Furthermore, QCOM's fiscal 2025 earnings consensus estimate has seen a recent upward revision to $11.75 per share, and the company maintains an average earnings surprise of +6.4%, indicating continued positive sentiment.

Analysis

Qualcomm (QCOM), a fabless semiconductor company, presents a nuanced profile for investors according to the provided data. While the stock holds a neutral Zacks Rank #3 (Hold), it exhibits strong underlying momentum signals, including a 'B' grade for its Momentum Style Score and overall VGM Score. This is corroborated by a 1.7% share price increase over the past four weeks. The earnings outlook, a key driver for the Zacks Rank, shows subtle positive signs; the fiscal 2025 consensus earnings estimate has been revised upward by $0.01 to $11.75 per share in the last 60 days. Furthermore, QCOM has a history of outperforming expectations, boasting an average positive earnings surprise of 6.4%. These factors suggest that while the broad analyst consensus remains on hold, recent price action and a consistent ability to beat earnings estimates are creating a moderately positive sentiment, particularly for investors with a momentum-based strategy.

Key Decisions for Investors

• Momentum-focused investors should consider QCOM for their shortlist, given its 'B' Momentum Score and recent positive price performance.
• Investors should weigh the positive underlying metrics, such as the 6.4% average earnings surprise and recent estimate revisions, against the neutral Zacks #3 (Hold) rating before initiating or expanding a position.
• It is prudent to monitor future analyst earnings estimate revisions closely, as sustained upward changes could serve as a catalyst for a potential rating upgrade and further share price appreciation.
• Given the mixed signals, maintaining current holdings while awaiting more definitive buy signals, such as a Zacks Rank upgrade, may be a reasonable strategy.