On August 04, 2026, Qualcomm Inc QCOM shares rose 7.3% today, trading at $162.67. The stock's performance has shown significant fluctuations over the past year, with a 52-week range between $121.99 and $259.92.
- GF Valueâ„¢ verdict: Current price is $162.67, compared to GF Value of $177.34, indicating an 8.3% undervaluation.
- GF Scoreâ„¢ of 92/100, which indicates strong overall performance.
- Most notable signal: Insiders sold $6.3 million worth of stock in the last three months, with no buying activity.
Is QCOM Overvalued or Undervalued?
Qualcomm's current price of $162.67 presents an opportunity as it is 8.3% below its GF Valueâ„¢ of $177.34. This suggests that the stock is undervalued, providing a potential margin of safety for investors. GF Valueâ„¢ is GuruFocus' proprietary estimate of a stock's intrinsic value, which is based on a mix of historical trading multiples, past business growth, and future performance expectations. The GF Valuation label indicates that Qualcomm is fairly valued at this time, and while the current price suggests a buying opportunity, investors should consider the overall market conditions and company performance before making decisions.
Given the recent insider selling activity, it is essential to evaluate the sustainability of Qualcomm's dividend, which is a significant factor for income-focused investors. The dividend yield and payout ratio should be closely monitored to ensure that the dividend remains attractive and safe.
How Does QCOM's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 18.8x | 17.5x |
| Forward P/E | 15.7x | N/A |
Qualcomm's current P/E ratio of 18.8x is 8% above its 5-year median P/E of 17.5x, indicating that the stock is trading above its historical valuation. This P/E analysis aligns with the GF Valueâ„¢ verdict, suggesting that while QCOM is undervalued based on GF Valueâ„¢, it is trading at a higher multiple than its historical average, which could indicate that the market has already priced in some growth expectations.
What Does QCOM's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures a stock's potential for long-term performance based on various criteria, including financial strength, profitability, growth, valuation, and momentum. Qualcomm boasts a GF Scoreâ„¢ of 92/100, reflecting its strong performance across several metrics.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 92/100 |
| Financial Strength | 7/10 |
| Profitability | 9/10 |
| Growth | 8/10 |
| Valuation | 10/10 |
| Momentum | 8/10 |
Qualcomm's strongest areas are its profitability rank of 9/10 and valuation rank of 10/10, indicating robust financial health and an attractive valuation profile. However, its financial strength rank of 7/10 suggests there are some areas for improvement, though overall, the high GF Scoreâ„¢ indicates a solid investment proposition.
What Are Gurus and Insiders Doing with QCOM?
Currently, 20 gurus hold Qualcomm's stock, with 11 adding to their positions and 9 trimming theirs in recent quarters. This activity indicates a generally positive sentiment among professional investors towards Qualcomm. However, it is essential to note that insiders have sold $6.3 million worth of stock in the last three months without any buying activity, which may raise some concerns about the confidence of those closest to the company.
This pattern of insider selling could suggest caution, and while the guru activity shows interest, the lack of insider buying might imply a need for further evaluation of the company’s future prospects.
What This Means for Investors
Overall, Qualcomm Inc QCOM appears to be undervalued based on its GF Valueâ„¢ of $177.34 compared to its current price of $162.67, presenting a potential opportunity for investors. However, the recent insider selling raises questions about the sustainability of its growth and dividend. Investors should consider these factors before making any decisions. For more comprehensive insights, visit the Qualcomm Inc (QCOM) stock page.
Frequently Asked Questions
What is QCOM's GF Scoreâ„¢?
QCOM's GF Scoreâ„¢ is 92/100, indicating strong overall performance and potential for long-term returns.
Is QCOM overvalued or undervalued?
According to GF Valueâ„¢, QCOM is currently undervalued, with a fair value estimate of $177.34 compared to its current price of $162.67.
What is QCOM's P/E ratio?
The P/E ratio for QCOM is 18.8x, which is above its 5-year median P/E of 17.5x, indicating it is trading at a higher multiple than its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
