In the technology sector, one company I think doesn’t receive enough praise by investors of late has to be Qualcomm Inc. (NASDAQ:QCOM). This company provides key functional technologies used in wireless products and mobile devices. Most notably, the company produces a number of key components for smartphones, a growth market that has continued to see sales spike due to the rise of 5G technology recently.
I think this secular trend in the 5G space is likely to continue to drive volumes higher for the foreseeable future. Qualcomm’s current valuation is relatively attractive, if one is factoring such growth into their models for the next few years. This is a stock that is trading sub-25 times earnings, with pretty impressive tailwinds supporting its business. Of course, competitive threats always exist in the components space, so investors have factored these in as well.
Shares of Qualcomm have dipped more than 10% since the beginning of the month, providing a nice entry point for investors who may have missed the run up in this stock. For those bullish on the long-term growth prospects of 5G and want to add some growth at a reasonable price to their portfolio, this stock is a great way to do so right now.
The company has some pretty large and successful growth companies as customers, including Apple Inc. (NASDAQ:AAPL) making this stock a great indirect way to play this secular growth trend.
Invest wisely, my friends.
