The company is currently embroiled in a dispute with chip designer Arm, which has threatened to force Qualcomm’s OEM customers into becoming Arm licensees, cutting Qualcomm out of its role as a supplier of licensed Arm designs to its customers. Arm has claimed that Qualcomm’s recent acquisition of Nuvia violates an already-terminated license agreement between Arm and Nuvia.
Of 33 analysts covering the company, 21 have Buy or Strong Buy ratings, and the other 12 rate the stock a Hold. At a share price of around $117.70, the upside potential based on a median price target of $172.50 is 46.6%. At the high target of $250.00, the upside potential is 112.4%.
Fourth-quarter fiscal 2022 revenue is forecast to come in at $11.37 billion, up 4.1% sequentially and by 22.0% year over year. Adjusted EPS are forecast at $3.13, up 5.9% sequentially and by 22.7% year over year. For the full fiscal year, analysts currently expect the company to post EPS of $12.51, up 46.5%, on sales of $44.12 billion, up 31.8%.
Qualcomm stock trades at about 9.4 times expected 2022 EPS, 9.2 times estimated 2023 earnings, 11.6 times estimated 2023 earnings of $12.77 and 8.8 times estimated 2024 earnings of $13.30 per share. The stock’s 52-week range is $104.66 to $193.58. Qualcomm pays an annual dividend of $3.00 (yield of 2.52%). Total shareholder return over the past 12 months was negative 9.9%.
Robinhood
Within a week of its initial public offering in late July last year, shares of Robinhood Markets Inc. (NASDAQ: HOOD) doubled in price. As of Monday’s close, the stock traded down more than 83% below that high and 66.5% below its IPO price. Among buyers of the stock are Cathie Wood’s ARKF and ARKW ETFs. ARKF has added about $8 million worth of Robinhood shares to its portfolio and is the fund’s sixth-largest position with $55 million invested. ARKW’s position is valued at around $45 million and is the fund’s 13th-largest position.
Just 14 brokerages cover the stock. Of those, just four have a Buy or Strong Buy rating and six more rate the share at Hold. At a recent price of around $11.70, the shares have outrun their median price target of $10.65. At the high price target of $13.00, the upside potential is 11.1%.
For the third quarter of 2022, revenue is forecast at $367.8 million, up 15.7% sequentially and less than 1% higher year over year. Analysts are looking for an adjusted loss per share of $0.25, compared to a loss of $0.31 per share in the previous quarter and the year-ago loss of $0.07. For the full fiscal year, current consensus estimates call for an adjusted loss per share of $1.13, far below the 2021 fiscal year loss of $7.49 per share. Revenue is forecast at $1.38 billion, down 24.1%.
Robinhood is not expected to post a profit until 2024. Shares trade at a multiple of 28.9 times estimated 2024 EPS of $0.40. The stock’s 52-week range is $6.81 to $38.17. The company does not pay a dividend. The total shareholder return for the past year was negative 66.6%.
Originally published at 24/7 Wall St.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
