Q2 STOCKS TO BUY

Semiconductor Stock Slips Despite HSBC Praise

QCOM is down 37% so far in 2022

Digital Content Manager
Oct 24, 2022 at 11:39 AM
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Qualcomm, Inc. (NASDAQ:QCOM) is down 0.7% at $114.88 at last check, after the semiconductor name drew price-target cuts both Susquehanna and Barclays to $130 and $120 from $165 and $160, respectively. Meanwhile, HSBC said the company is prepared to handle slowing chip demand for smartphones, calling the stock a "buy."

Analysts have been bullish toward QCOM, with 11 of the 15 in coverage sporting a "buy" or better rating, while four say "hold." What's more, the 12-month consensus target price of $178.80 is a 56.1% premium to current levels. 

Short-term options traders echo that optimism. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.51, which stands higher than just 3% of annual readings, indicating a call-bias.

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) sits at 84 out of 100. This means QCOM has exceeded option traders' volatility expectations over the last year.

On the charts, Qualcomm stock has been distancing itself from an Oct. 13, two-year low of $104.66. The shares have struggled with overhead pressure at the 30-day moving average since August, and a new ceiling appears to be forming at the $117 region. Year-to-date, QCOM is down 37%. 

 

 
 

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