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Qualcomm Undervalued and Broadcom Forecast Uncertain? Last Remainder Buy by BuyTrigger.io
Qualcomm Undervalued and Broadcom Forecast Uncertain? Last Remainder Buy by BuyTrigger.io
A comprehensive analysis of Qualcomm's undervaluation and Broadcom's uncertain forecast, with buy recommendations for the remainder of July by Family Investments.
As we enter the third quarter of 2024, the stock market has shown resilience despite persistent challenges. The second quarter saw U.S. stocks maintaining their gains, fueled by strong earnings from mega-cap stocks, though concerns about inflation and economic data tempered enthusiasm. The "Magnificent Seven" stocks, which significantly boosted market returns earlier in the year, have seen their influence wane, with gains now spreading more broadly across different sectors.
Looking forward, the market is expected to continue its recovery, albeit with some volatility. The Federal Reserve's decisions and upcoming blue-chip earnings reports are critical factors to watch. In this context, investors are advised to be selective, focusing on fundamentally strong stocks with growth potential.
Part 1: Change in Broadcom (AVGO) Valuation
Broadcom (AVGO) has undergone significant valuation changes due to two key reasons:
1. Stock Split Activation:
Broadcom's stock split, set to become active next week, is expected to increase the stock's liquidity and attractiveness to a broader investor base. Stock splits do not change a company's market capitalization but often lead to increased trading activity and potentially higher prices.
Before
After
2. Fluctuating Earnings Forecasts:
The earnings forecasts for Broadcom have seen notable fluctuations. Initially, the EPS forecast for 2027/28 was 99, but recent revisions have lowered this to 82. Our adjusted calculations settle at an EPS estimate of 88. This volatility in earnings forecasts contributes to an uncertain outlook, necessitating cautious evaluation of Broadcom's future performance.
Part 2: New Addition of Qualcomm (QCOM) to the BuyTrigger Database
Qualcomm (QCOM) has been recently added to the BuyTrigger database, and our analysis indicates it is currently undervalued. Here’s a detailed look at our findings:
Current BuyTrigger Analysis:
Buy Trigger: $181
Valuation: $244
Growth: 11%
Technical and Market Insights:
Current Price: $202.43
Industry: Semiconductors
Stock Type: Mature Growth
Growth Performance: Qualcomm has shown significant upward movement over the past year, reflecting robust performance in the semiconductor sector.
Technical Indicators: The stock is trading above both its 50-day and 200-day moving averages, indicating a bullish trend. The MACD indicators also show bullish momentum.
Conclusion:
Given its strong performance and current undervaluation, Qualcomm is rated as a Buy. The stock's attractive entry point and growth potential make it a compelling investment option.
Part 3: Recommended Buy Ratings for Remainder of July
In addition to Qualcomm, we recommend the following stocks for Buy ratings for the remainder of July and beyond. These stocks have been selected based on their growth potential, current valuations, and market performance:
Recommended Stocks:
Micron (MU)
Intrinsic Value: $236.34
Stock Type: High Growth
Recommendation: Buy
Vistra (VST)
Intrinsic Value: $164.51
Stock Type: High Risk
Recommendation: Buy
Square (SQ)
Intrinsic Value: $118.99
Stock Type: High Risk
Recommendation: Buy
Meta Facebook (META)
Intrinsic Value: $559.72
Stock Type: Mature Growth
Recommendation: Buy
Salesforce (CRM)
Intrinsic Value: $230.48
Stock Type: Mature Growth
Recommendation: Buy
Uber (UBER)
Intrinsic Value: $62.66
Stock Type: High Growth
Recommendation: Buy
Broadcom (AVGO)
Intrinsic Value: $160.36
Stock Type: Mature Growth
Recommendation: Buy
These stocks have been thoroughly evaluated and are expected to perform well in the coming months.
Conclusion
As we progress through July, it is essential to stay informed about market fluctuations and company-specific developments. Broadcom's recent valuation changes and Qualcomm's addition to our database highlight the dynamic nature of the stock market. By focusing on fundamentally strong and undervalued stocks, investors can make informed decisions to capitalize on market opportunities.
Stay tuned for more updates and detailed analysis from Family Investments.
💡
Exciting news, BuyTrigger.club members! We’ve been busy enhancing your experience and are thrilled to announce some incredible updates coming your way by the end of the month. Here’s what you can look forward to:
The Official BuyTrigger Course for Beginners: Our comprehensive new course designed for beginners, now including membership benefits.
Exclusive Community: Join a network of serious family investors and individuals, led by Alex, who will share invaluable insights and guidance.
Quarterly Earnings Webinars: Participate in our first quarterly webinar at the end of July, where we’ll dive deep into earnings reports and market analysis.
BuyTrigger Telegram App: Get instant updates with our new Telegram app—no more late notifications!
Bonus Tools: Access our free intrinsic value calculator and company valuation tools to make informed investment decisions.
Mark your calendars and stay tuned—these exciting updates are set to launch at the end of the month. Your path to financial success is about to become even more powerful with BuyTrigger.club. Keep an eye on your inbox for more details, and get ready to elevate your investment journey!
This blog post is for informational purposes only and does not constitute financial advice. The views and opinions expressed in this post are solely my own and are based on my personal analysis and experience. All information is provided on an as-is basis, and while I strive to ensure accuracy, I make no guarantees regarding the completeness, reliability, or accuracy of the information provided.
Investing in stocks and financial instruments involves risk, including the potential loss of principal. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. This blog is intended as a personal journal to document my thoughts and strategies, and should not be taken as a recommendation to buy or sell any securities.
By reading this blog, you acknowledge that I am not responsible for any investment decisions you make based on the information provided here. Please exercise due diligence and consider your own financial situation and goals before making any investments.
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