Semiconductor Stock Eyes Bounce Towards Record High

The brokerage bunch is already bullish towards QCOM

Digital Content Manager
Jan 4, 2022 at 3:01 PM
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Chip maker Qualcomm, Inc. (NASDAQ:QCOM) is down 1.4% to trade at $183.64 this afternoon. The security has had a few volatile weeks on the charts, though it did score a Dec. 16, all-time high of $192.68. Shares have since cooled from that peak, and are now testing a floor at the $181 level. The good news is that QCOM's pullback has placed the equity near a trendline with historically bullish implications, which could lead to more record highs in the coming weeks.
 
The trendline in question is the equity's 40-day moving average. QCOM is now within just one standard deviation of it, after spending nearly two months above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals were observed over the last three years. QCOM enjoyed a positive return one month later after all of these signals, averaging a significant 10.9% gain. From its current perch, a comparable move would place the stock at a fresh record high of $203.65.

 

QCOM 40 Day

The brokerage bunch is already bullish towards Qualcomm stock. Of the 35 analysts in question, 25 call it a "buy" or better, while the other 10 carry a "hold" rating. Plus, the 12-month consensus target price of $208.50 is a 13.4% premium to QCOM's current perch.

The options pits echo that optimism.  At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM sports a 50-day call/put volume ratio of 4.27, which stands in the 99th percentile of its annual range. This means options traders are picking up long calls at a quicker-than-usual clip. 

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