5-Star Stocks Poised to Pop: Qualcomm

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

$95.7 billion


Communications equipment

Trailing-12-Month Revenue

$17.4 billion


Chairman/CEO Dr. Paul Jacobs
President/COO Steven Mollenkopf

Return on Equity (average, past 3 years)



$15.1 million / $1.2 billion

Dividend Yield



Texas Instruments

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

On CAPS, 94% of the 2,464 members who have rated Qualcomm believe the stock will outperform the S&P 500 going forward.

Just last month, fellow Fool Anders Bylund (TMFZahrim) urged our community not to panic over management's seemingly weak short-term outlook:

Did Qualcomm lose its cherished chip provider status for the next iPhone revision? Are Android sales falling through the floor?

Or is management just being conservative here?

I'm thinking "conservative." Qualcomm missed the Wall Street earnings target six months ago and would probably prefer not to do it again -- so why not set the bar low? Once bitten, twice shy.

This is still a top-shelf company and a premium stock.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Qualcomm may not be your top choice.

Interested in tech stocks? The Nasdaq index is up about 6% year to date, but most of that is driven by Apple's huge influence. However, another company has been crushing the market, up over 40% so far this year, and our analysts think that even more returns are ahead. In our newest special free report entitled "Forget Facebook -- Here's the Tech IPO You Should Be Buying," you'll learn more about this online leader poised for greatness in the years to come.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

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

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.