10 Most Undervalued High Quality Stocks to Buy According to Analysts

7. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E Ratio: 13.16 

Number of Hedge Fund Holders: 79

Analyst Upside Potential: 21.14%

QUALCOMM Incorporated (NASDAQ:QCOM) is a leading technology company that specializes in commercializing technologies in the wireless industry. The company is renowned for its semiconductor chips such as the Snapdragon processors. It owns a portfolio of patented technologies which it licenses to other companies as well.

On February 7th, Benchmark Co. analyst Cody Acree maintained a Buy rating on the stock, with a price target of $240. The analyst noted the growth QUALCOMM Incorporated (NASDAQ:QCOM) is making in its IoT, smartphones, and automotive segments. Cody Acree highlighted that the company surpassed chipset sales guidance and also increased year-over-year revenue in key segments.

During the fiscal first quarter of 2025, the company increased its revenue by 17.6% year-over-year to $11.7 billion. This marked the third consecutive quarter of double-digit growth for the company. QUALCOMM Incorporated (NASDAQ:QCOM) has been driving its revenue higher on the back of its QCT segment, which grew 20% year-over-year during the quarter to reach $10.1 billion. It is one of the most undervalued high-quality stocks to buy according to analysts.

Fidelity Dividend Growth Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:

“At the stock level, QUALCOMM Incorporated (NASDAQ:QCOM) was a major detractor, returning about -14% the past three months. The firm develops and manufactures semiconductors, software and services used in mobile phones, and other wireless technologies. On July 31, the company reported second-quarter results, and issued guidance for Q3, both of which solidly exceeded expectations. The stock slid, however, on concerns about a slow recovery for smartphones. Additionally, shares dipped this quarter in step with other semiconductor-related names.”