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Technical Analysis of Qualcomm versus Its Peers

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MACD

The moving average convergence divergence (or MACD) refers to the difference between a stock’s long-term and short-term moving averages. A positive figure shows an upward trading trend while a negative figure shows a downward trading trend. Qualcomm (QCOM) recorded an MACD of 0.73 in the last 14 days.

Among Qualcomm’s peers, Intel (INTC), Advanced Micro Devices (AMD), Micron Technology (MU), and Cypress Semiconductor (CY) reported MACD figures of -0.07, -0.42, 0.40, and -0.03, respectively.

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Shareholder returns and stock trends

Qualcomm (QCOM) stock generated a return of ~4.3.% in the trailing-12-month period, compared to an ~6.6% return in the trailing-one-month period. However, QCOM lost ~3.3% in the trailing-five-day period.

Bollinger Band

In the May 31, 2017, trading session, Qualcomm’s stock price closed at $57.30, close to its mid–Bollinger Band of $56.00. This implies that the stock is neither oversold nor overbought. 

A stock is considered overbought if it’s trading close to the upper Bollinger Band and is considered oversold if it’s trading close to the lower Bollinger Band.

Qualcomm’s price multiples

On May 31, Qualcomm (QCOM) was trading at a forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple of ~10.3x. 

Among QCOM’s peers, Intel (INTC), Advanced Micro Devices (AMD), Micron Technology (MU), and Cypress Semiconductor (CY) had EV-to-EBITDA multiples of ~7.2x, ~35.6x, ~4.6x, and ~13.6x, respectively.

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