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EU to Force Car-Rental Firms to Buy EVs Only From 2030: Bild
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1 Incredible Reason to Buy This Value Stock Before Wall Street Catches On
Key Points Qualcomm has struggled amid the upcoming loss of a major customer and heavy China exposure. The company's emerging product lines arguably give investors good reason to take advantage of its low valuation. 10 stocks we like better than Qualcomm › In recent years, investors have largely overlooked Qualcomm (NASDAQ: QCOM) stock. The leader in smartphone chipsets faced declining revenues after the 5G upgrade cycle ran its course, and the demand for AI-enabled phones has so far not fostered a comparable growth cycle. Plus, Apple is on track to drop Qualcomm as a chipset provider in 2027, and the company's heavy exposure to China has weighed on the stock. Still, despite those challenges, investors may be overlooking a compelling reason to buy this value stock. Here's why. Why investors should expect a Qualcomm comeback In short, the reason to buy Qualcomm is its emerging business lines. Indeed, struggles in the smartphone chipset business could continue. However, Qualcomm has long anticipated a day when smartphones would become less critical. It has expanded into new business lines, including IoT, automotive, and more recently, the PC business. It also plans to design custom processors that will integrate with Nvidia's AI chips. These moves are showing early signs of success. Although revenue growth was 17% year-over-year in the first half of fiscal 2025 (ended March 30), IoT revenue grew 31% during that period, and automotive revenue surged 60%. This is far above the 12% increase in the handset chip sales that still drive most of the company's revenue. What's more, Qualcomm's costs and expenses grew at levels closely approximating revenue growth. Still, its $6 billion in net income in the first two quarters of fiscal 2025 rose by 18%, indicating the company's chip businesses are in an up-cycle. Although Qualcomm did not report numbers on its PC business, it expects to generate $4 billion in annual revenue from that business by fiscal 2029. Finally, despite double-digit profit growth, Qualcomm stock sells at a P/E ratio of 16. This indicates that investors have largely ignored the growth potential of this chip giant. However, with the rapid growth in Qualcomm's newer business lines, investors may want to take advantage of the low P/E ratio before more investors take notice. Do the experts think Qualcomm is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Qualcomm make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Will Healy has positions in Qualcomm. The Motley Fool has positions in and recommends Apple, Nvidia, and Qualcomm. The Motley Fool has a disclosure policy. 1 Incredible Reason to Buy This Value Stock Before Wall Street Catches On was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Business Insider
an hour ago
- Business Insider
Kepler Capital Sticks to Their Buy Rating for Tokmanni (0RG2)
In a report released on July 18, Erik Sandstedt from Kepler Capital maintained a Buy rating on Tokmanni, with a price target of €13.00. The company's shares closed last Friday at €10.33. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Sandstedt is an analyst with an average return of -3.3% and a 34.15% success rate. Sandstedt covers the Technology sector, focusing on stocks such as Fortnox AB, Lime Technologies AB, and Vitec Software Group AB Class B. Tokmanni has an analyst consensus of Moderate Buy, with a price target consensus of €13.00.