Why Is Qualcomm The Best Technology Stock To Buy?

Qualcomm (QCOM) is the largest semiconductor supplier of the smartphone industry. The company holds a 36% stake in application processor shipments and, according to IDC, the smartphone industry is growing at 45% per annum. Qualcomm, much like Apple (AAPL), is followed closely by analysts and investors. This makes meeting expectations very difficult, let alone beating them. Still, QCOM has beaten analysts' estimates in 3 of the last 4 quarters. We believe that the margins of smartphone semiconductor companies will expand as they get more bargaining power in a maturing industry. We have a buy rating on QCOM.

QCOM is still very cheap, with a P/E of 14x. Our research shows increasing sales and margins going forward. That is why we still believe that QCOM is the best placed technology stock and give a buy rating for QCOM. Read more