Here's Why Qualcomm (QCOM) is a Strong Momentum Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

Qualcomm (QCOM)

Headquartered in San Diego, CA, Qualcomm Incorporated designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access (CDMA) technology. The products include CDMA-based integrated circuits (ICs) and system software for wireless voice and data communications as well as global positioning system (GPS) products. The company also offers development and other product related services to the U.S. government agencies and their contractors. Qualcomm's business is organized into two reporting segments as follows:

QCOM is a Zacks Rank #3 (Hold) stock, with a Momentum Style Score of A and VGM Score of B. Shares are up 10% over the past one week and up 5.7% over the past four weeks. QCOM has gained 69.6% in the last one-year period as well. Looking at trading volume, an average of 8,640,775 shares exchanged hands over the last 20 trading days.

Momentum investors also pay close attention to a company's earnings. For QCOM, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.27 to $9.84 per share for 2024. QCOM boasts an average earnings surprise of 7.5%.

QCOM should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

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