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 reslience, 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 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.
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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