10 Undervalued Wide Moat Stocks to Buy According to Analysts

2) QUALCOMM Incorporated (NASDAQ:QCOM)

Average Upside Potential: 26.08%

Forward P/E Ratio (As of September 25): 15.15x

QUALCOMM Incorporated (NASDAQ:QCOM) is engaged in the development and commercialization of foundational technologies for the wireless industry worldwide.

The company has a wide economic moat as a result of its patent portfolio. Furthermore, this wide economic moat is aided by QUALCOMM Incorporated (NASDAQ:QCOM)’s intellectual property and years of R&D expertise in wireless technologies. Wall Street analysts believe that the company has been taking market share in premium Android handsets, Automotive cockpit, and PC. The upcoming phase of artificial intelligence growth is at the network edge. QUALCOMM Incorporated (NASDAQ:QCOM) appears to be well-placed for AI and Gen AI applications reaching these network edge markets.

The company believes that the launch of the Snapdragon X Series solutions for PCs is expected to aid its long-term growth trajectory. This launch marks a notable milestone in QUALCOMM Incorporated (NASDAQ:QCOM)’s transformation to intelligent computing. The company’s chip business (QCT) and licensing business (QTL) should continue to generate healthy cash flow. In licensing, QUALCOMM Incorporated (NASDAQ:QCOM) was able to tackle several challenges in recent years, and Wall Street believes that QTL should be able to sustain high-margin royalty revenue over time.

For Q4 2024, the company expects revenues in the range of $9.5 billion – $10.3 billion, with QCT revenues anticipated to come between $8.1 billion – $8.7 billion. For the same period, QUALCOMM Incorporated (NASDAQ:QCOM) anticipates GAAP diluted EPS of between $2.38 – $2.58.

Analysts at Bank of America upped their target price on shares of QUALCOMM Incorporated (NASDAQ:QCOM) from $180.00 to $245.00, giving a “Buy” rating on 31^st May. As per Insider Monkey’s Q2 2024 data, 100 hedge funds reported owning stakes in the company, up from 78 in the preceding quarter.

O’keefe Stevens Advisory, an investment advisory firm, released its second-quarter 2024 investor letter. Here is what the fund said:

“During the quarter, the A.I. rally broadened beyond the obvious players of Nvidia, AMD, and hyperscalers. QUALCOMM Incorporated (NASDAQ:QCOM), a long-standing investment, is gaining recognition for integrating artificial intelligence into mobile phones. Qualcomm’s A.I. on-device capabilities enable real-time language translation, improved voice recognition, and sophisticated imaging techniques as A.I. becomes more integral to mobile experiences. Qualcomm benefits by leading the market in providing robust, efficient, and versatile A.I. solutions. A.I. could be the first technology advancement in several years to accelerate the smartphone replacement cycle as users desire these advanced capabilities.”