With Qualcomm Stock Sliding, Have You Assessed The Risk?
Qualcomm (QCOM) stock is down 7.1% in 21 trading days. The recent slide reflects renewed concerns around handset business headwinds and potential Apple modem losses, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn resilience, let’s look at where Qualcomm stands today.
- Size: Qualcomm is a $182 Bil company with $44 Bil in revenue currently trading at $169.27.
- Fundamentals: Last 12 month revenue growth of 13.7% and operating margin of 28.0%.
- Liquidity: Has Debt to Equity ratio of 0.08 and Cash to Assets ratio of 0.2
- Valuation: Qualcomm stock is currently trading at P/E multiple of 32.9 and a P/EBIT multiple of 13.7
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 117% within a year. See QCOM Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell QCOM Stock
That brings us to the key consideration for investors worried about this fall: how resilient is QCOM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose QCOM stock falls another 20-30% to $118 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- Qualcomm Stock Delivers Strong Cash Yield – Upside Ahead?
- Is Qualcomm Stock Built to Withstand More Downside?
- Is Qualcomm Stock’s 24% Drop A Bargain?
- A Money Making Strategy for Qualcomm’s Memory Crisis
- With Strong Cash Flow, Qualcomm Stock Poised to Rise?
- Strong Cash Yield: Is Qualcomm Stock A Buy?
2022 Inflation Shock
- QCOM stock fell 45.1% from a high of $189.28 on 15 December 2021 to $103.88 on 3 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 May 2024
- Since then, the stock increased to a high of $227.09 on 19 June 2024 , and currently trades at $169.27
| QCOM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.1% | -25.4% |
| Time to Full Recovery | 559 days | 464 days |
2020 Covid Pandemic
- QCOM stock fell 36.5% from a high of $95.91 on 17 January 2020 to $60.91 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 30 July 2020
| QCOM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.5% | -33.9% |
| Time to Full Recovery | 132 days | 148 days |
2018 Correction
- QCOM stock fell 34.2% from a high of $75.09 on 14 September 2018 to $49.40 on 29 January 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 April 2019
| QCOM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.2% | -19.8% |
| Time to Full Recovery | 78 days | 120 days |
2008 Global Financial Crisis
- QCOM stock fell 48.2% from a high of $56.37 on 15 August 2008 to $29.21 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 February 2011
| QCOM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -48.2% | -56.8% |
| Time to Full Recovery | 812 days | 1,480 days |
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