5-Star Stocks Poised to Pop: Qualcomm

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile chip specialist Qualcomm (NAS: QCOM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Qualcomm's business and see what CAPS investors are saying about the stock right now.

Qualcomm facts

Headquarters (Founded)

San Diego (1985)

Market Cap

$82.9 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$13.8 billion

Management

Chairman/CEO Dr. Paul Jacobs

CFO William Keitel

Return on Equity (Average, Past 3 Years)

15%

Cash/Debt

$10.73 billion / $1.3 billion

Dividend Yield

1.7%

Competitors

Broadcom (NAS: BRCM)

Nokia (NYS: NOK)

Texas Instruments (NYS: TXN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 2,260 members who have rated Qualcomm believe the stock will outperform the S&P 500 going forward. These bulls include MatthewCHoffman and bpr831

This past August, MatthewCHoffman wrote that Qualcomm "holds a place on increasing relevance as more and more computing goes mobile." Our CAPS member concludes: "The company's valuation is reasonable given its position and the dividend's even a nice kicker."

Qualcomm even boasts a robust three-year average operating margin of 33.3%. That's higher than that of competitors Broadcom (7.9%), Nokia (6.3%), and Texas Instruments (24.8%).

CAPS member bpr831 elaborates on the bull case:

I think Qualcomm is very safe, reliable stock and will maintain consistent growth for the foreseeable future. While I find the companies within the tech industry to be very hit of miss, I find the sector itself to maintain modest growth despite the tough times. In addition, Qualcomm continues to be the largest chipset developer for mobile phones, they're working with Microsoft on developing new state of the art chipsets, and they're the only developer for Windows smartphones and notebooks. I predict more significant gains end 2011/early 2012.

What do you think about Qualcomm, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackQualcomm?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Qualcomm and Texas Instruments. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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