Stock Performance Comparison
Both stocks have underperformed the market in the last few years. However, both companies have good growth prospects, and as I see it, they are well positioned to outperform the broader markets in the next few quarters.
Also Read: Can Qualcomm become the Next Intel?
Since the beginning of the year, QCOM’s stock is already up 33.8%, while the S&P 500 Index has increased 11.1%, and the Nasdaq Composite Index has gained 9.5%. However, since the beginning of 2012, QCOM’s stock has gained only 22.3%. During this period, the S&P 500 Index has jumped by 80.6%, and the Nasdaq Composite Index has risen 110.5%. According to TipRanks, the average target price of the top analysts for Qualcomm is at $73.50, representing an upside of 9.8% from its December 20 close price of $66.91. However, in my opinion, shares could go even higher.
Since the beginning of the year, INTC’s stock is up 8.0%, and since the beginning of 2012, the stock has gained only 53.4%. According to TipRanks, the average target price of the top analysts for Intel is at $40.47, representing an upside of 8.8% from its December 20 close price of $37.21, which appears reasonable, in my opinion.
What To Expect From Next Quarter Earnings Reports
Qualcomm is scheduled to report its first quarter fiscal 2017 financial results on Wednesday, February 1, after market close. According to 19 analysts’ average estimate, Qualcomm is expected to post a profit of $1.17 a share, a 20.6% increase from the year-ago quarter. The highest estimate is for a profit of $1.22 a share while the lowest is for a profit of $1.06 a share. Revenue for the first quarter is expected to grow 5.9% year over year to $6.11 billion, according to 19 analysts’ average estimate. There was one downward earnings per share revision during the last thirty days.
Intel is scheduled to report its fourth quarter 2016 financial results on Tuesday, January 17, after market close. According to 30 analysts’ average estimate, Intel is expected to post a profit of $0.75 a share, a 1.4% increase from the year-ago quarter. The highest estimate is for a profit of $0.79 a share while the lowest is for a profit of $0.71 a share, not a big difference. Revenue for the fourth quarter is expected to grow 5.5% year over year to $15.73 billion, according to 32 analysts’ average estimate. There were two upward earnings per share revisions during the last seven days.
Conclusion
While both stocks look attractive in my opinion, The QCOM stock has the advantage of the growing mobile market compared to the shrinking PC market. What’s more, as I wrote in my previous article about Qualcomm (1), it has developed new products and applications that could increase its revenue and profits and drive higher its stock over the coming quarters. Taking everything into consideration, I think Qualcomm is a better bet than Intel right now. Looking for great tech stocks? Check out Amigobulls’ top stock picks, which have beaten the NASDAQ by over 110%.
The article Is Qualcomm Inc (QCOM) Stock A Better Bet Than Intel Corporation (INTC) Stock? originally appeared on amigobulls.com. Watch our analysis video on QCOM.
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