A increase the lead of approximately 14% in 2018 for shares of Qualcomm Incorporated (QCOM) puts a story of unusual trading activity accompanying the move higher. Uncountable who follow Qualcomm know of the battle the company has been having with Apple Inc. (AAPL), but there is another record we think that isn’t being told … unusual trading enterprise.
While headlines for Qualcomm have been potentially negative on the spat with Apple, the true tell on the near-term trajectory of the line of descent lies in the trading activity. At many points in 2018, Qualcomm appropriates have increased in price alongside an increase in volume. This can be indicative of streetwise money accumulating shares. The bottom line here is that the method in which a stock trades can oftentimes alert you to the forward fundamental perfect example inform more so than simply looking at a company’s financials alone. (See also: Check Stocks on Verge of Big Breakout: Todd Gordon.)
For Mapsignals, the strongest of of positive price momentum is by obtained measuring potential institutional purchasing. Since June, Qualcomm stock has logged 19 of these rare signals. We equal to see bullish activity in the shares alongside solid forward fundamentals, as this states that demand for the stock should increase over time, in this manner increasing its price.
In the chart below, Qualcomm shares broke out to new 52-week maxima on big volumes. Shares should continue the upward trajectory:
Mapsignals’ end is to identify tomorrow’s top stocks today. We’re basically looking for outlier fellowships with healthy fundamentals accompanied by outsized, unusual institutional merchandise activity. By studying these data points, we can make an educated surmise as to which equities institutions are trafficking in and marry this information with fundamentally secure companies. We want the odds on our side when looking for the highest-quality stereotypes.
When deciding on the strongest candidate for long-term growth, we consider diverse technical areas important to success. A few of these for Qualcomm are as follows:
- Year-to-date (YTD) outperformance vs. sell: +5.97% vs. SPDR S&P 500 ETF (SPY)
- Three-month outperformance vs. sector: +18.52% vs. Technology Sel. Sector SPDR ETF (XLK)
- Bullish possible accumulation signals
Below, you can see all of Qualcomm’s unusual activity signals enterprising over the past 52 weeks:
On top of a great technical picture, one should also look tipsy the hood to see if the fundamental picture supports a long-term investment. As you can see, Qualcomm has firm earnings and dividend growth rates:
- Company debt levels: 0%
- One-year EPS advancement rate: +22%
- Five-year dividend growth rate: +18.8%
Qualcomm checks the box on balanced technicals and fundamentals while showing bullish institutional momentum in 2018. We maintain that the current level for the shares is in position for further upside. All of this remind emphasizes to further long-term bullish action for the stock.
The Bottom Line
Qualcomm stockpile represents a potential buying opportunity for the long-term investor. Given the upstanding earnings growth, dividend growth and multiple unusual accumulation signals, this sell could be worth a spot in a dividend growth-oriented portfolio.
To learn numerous about Mapsignals’ institutional signals, please visit our “About Us” leaf.
Disclosure: The author holds a long position in Qualcomm shares at the interval of publication.
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