On Jun 22, 2015, Zacks Investment Research upgraded Qualcomm Incorporated QCOM by a notch to a Zacks Rank #2 (Buy).
Recently, Qualcomm announced its decision to sell its L-band spectrum in the U.K. The spectrum can be used by mobile operators to provide enhanced download speeds to customers. Notably, Qualcomm is the sole licensee in the U.K. The company had picked up all 40MHz of L-band spectrum in 2008, paying a license fee of £8.3m ($12.8 billion) for the 1452-1492MHz frequency range.
We believe Qualcomm’s move to monetize its L-Band spectrum should boost its cash position significantly. At the same time, this should benefit operators with higher mobile broadband speed and also cater to the growing demand for 4G data transmission.
Qualcomm has added yet another feather to its cap. Recently, at Google Inc.’s GOOG I/O conference, Qualcomm announced that Google’s next-generation Project Tango smartphone development platform will run on its Snapdragon 810 processor. Notably, the platform will be available in the market from the third quarter of 2015.
Meanwhile, Qualcomm leads the global mobile baseband chipset market. Continued smartphone sales growth, especially in the emerging countries, bodes well for the company’s long-term prospects. Moreover, Qualcomm raised its total revenue and non-GAAP earnings per share guidance for fiscal 2015 on the heels of the NDRC (National Development and Reform Commission) settlement news.
For the current year, the company witnessed one upward revision over the last two months with the Zacks Consensus Estimate moving up by 0.2% to $4.30.
Other Stocks to Consider
Better-ranked stocks that warrant a look in this sector include InterDigital, Inc. IDCC and PCTEL, Inc. PCTI. InterDigital sports a Zacks Rank #1 (Strong Buy) whereas PCTEL holds a Zacks Rank #2 (Buy).
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