Why Qualcomm Is Poised to Outperform

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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 giant Qualcommhas earned a coveted five-star ranking.

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

Qualcomm facts

Headquarters (founded)

San Diego (1985)

Market Cap

$112.1 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$20.5 billion

Management

Chairman/CEO Paul Jacobs

President/COO Steven Mollenkopf

Return on Equity (average, past 3 years)

18.1%

Cash/Debt

$13.3 billion / $31.0 million

Dividend Yield

1.5%

Competitors

Broadcom

Nokia

Texas Instruments


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 2,653 members who have rated Qualcomm believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TempoAllegro, succinctly summed up the bull case for our community:

Two points to focus on here -- Qualcomm is well-known for its excellent research and development, and those patents are all over the world of cell phones, whatever the type. The other point to notice is that [Qualcomm] does not only supply Apple, but also Android-operating phones, so that puts them in the nice position of winning out no matter who wins the smart phone wars.

If Qualcomm has done the work to ensure it gets its cut almost regardless of who you buy your cell phone from, I think it's worth a little more work on my part as an investor to dig in and get my cut by purchasing shares of Qualcomm at a reasonable price.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Qualcomm may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why Qualcomm Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Qualcomm. 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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