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QUALCOMM INC (NASDAQ:QCOM) – A Strong Candidate for Long-Term Growth Investors

By Mill Chart

Last update: Jun 5, 2025

QUALCOMM INC (NASDAQ:QCOM) stands out as a compelling pick for investors seeking growth at a reasonable price (GARP). The company, a leader in wireless technology, meets key criteria from Peter Lynch’s investment strategy, balancing solid growth, profitability, and an attractive valuation.

QUALCOMM stock chart

Why QCOM Fits the GARP Approach

  • Strong Earnings Growth: Over the past five years, QCOM has delivered an impressive average annual EPS growth of 23.5%, well within Lynch’s preferred range of 15-30%. This indicates sustainable expansion without excessive risk.
  • Reasonable Valuation: With a PEG ratio (past 5 years) of 0.56, the stock appears undervalued relative to its growth. A PEG below 1 suggests the market may not fully price in future earnings potential.
  • Healthy Financials: The company maintains a Debt/Equity ratio of 0.48, below Lynch’s upper threshold of 0.6, and a Current Ratio of 2.73, reflecting strong liquidity.
  • High Profitability: QCOM’s Return on Equity (ROE) of 39.8% far exceeds the 15% minimum Lynch favored, highlighting efficient use of shareholder capital.

Fundamental Strengths

Our fundamental analysis report rates QCOM 8 out of 10, with standout scores in profitability (9/10) and financial health (8/10). Key takeaways:

  • Margins: Operating margins of 27.6% and profit margins of 26.1% rank among the industry’s best.
  • Dividend: A 2.4% yield with a sustainable payout ratio (34% of earnings) adds income appeal.
  • Growth Outlook: While revenue growth may slow, EPS is projected to grow 10% annually, supported by 5G and IoT demand.

For more stocks matching the Peter Lynch strategy, explore our screener results.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.

QUALCOMM INC

NASDAQ:QCOM (6/4/2025, 8:00:01 PM)

Premarket: 148.31 -0.74 (-0.5%)

149.05

+0.11 (+0.07%)



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QCOM Latest News and Analysis

ChartMill News Image3 minutes ago - ChartmillQUALCOMM INC (NASDAQ:QCOM) – A Strong Candidate for Long-Term Growth Investors

QUALCOMM (QCOM) offers strong growth, solid profitability, and reasonable valuation, making it a standout for GARP investors. The company excels in wireless tech with healthy financials and a sustainable dividend.

ChartMill News Image7 days ago - ChartmillQUALCOMM INC (NASDAQ:QCOM) – A Strong Dividend Stock with Solid Fundamentals

QUALCOMM (QCOM) is a strong dividend stock with a 2.35% yield, sustainable payout ratio, and solid profitability. Its financial health and reasonable valuation make it appealing for income investors.

ChartMill News Image17 days ago - ChartmillQUALCOMM INC (NASDAQ:QCOM) – A Potentially Undervalued Stock with Strong Fundamentals

QUALCOMM INC (NASDAQ:QCOM) presents a compelling value case with strong profitability, financial health, and an attractive valuation. The stock’s steady growth and reliable dividend add to its appeal for long-term investors.

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