An Unquestionable Winner From the Mobile Revolution: QUALCOMM, Inc. (QCOM)

Other players like Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Limited (USA)(NASDAQ:RIMM) are trying to recover some of the ground they have lost over the last years, and they offer plenty of upside potential if they succeed in they efforts. But they are way behind the big players, both in terms of market share and ecosystem depth, so they carry a lot of risk if things don’t turn out as expected.

A rock solid supplier

Qualcomm, on the other hand, looks like a more transparent alternative in the mobile space. The company is a key provider of digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology among other products and services. Qualcomm is strongly integrated into Apple’s iPhone and iPad products as well as many Android-based devices, including the best-selling products from Samsung, so it looks positioned for growth under different competitive scenarios.

The company is above its competitors when it comes the technological quality of its products, as demand for smartphones and tablets keeps growing; Qualcomm is in a privileged position to profit from the mobile boom.

In fact, the company has done exceedingly well in terms of both sales and earnings over the last years, and there is no reason to believe that this will come to an end anytime soon.

And valuation looks attractive too. At a P/E ratio below 20, Qualcomm is cheaper than it has been at any time over the last 10 years. This is probably because investors have been selling Qualcomm due to fears over a possible slowdown in iPhone demand. They seem to be forgetting, however, that Qualcomm is still a big supplier to Apple’s biggest competitor: Samsung.

No matter which device manufacturer wins the mobile race, as long as Qualcomm remains a leading supplier to the biggest players in the industry, the company will continue rewarding shareholders with solid growth in sales and earnings over the next years.

Bottom line

“Gold diggers” in the mobile computing industry are looking like a complicated bet right now. But Qualcomm, the leading “shovel manufacturer,” is a much safer bet. Both in terms of growth opportunities and current valuation, the company has a lot to offer to investors looking for smart ways to capitalize on the mobile revolution.

The article An Unquestionable Winner From the Mobile Revolution originally appeared on Fool.com.

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