HomeMost PopularTech StocksTime to Buy Apple or Qualcomm Stock for Their Renewed Partnership

Time to Buy Apple or Qualcomm Stock for Their Renewed Partnership

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The renewal of Apple AAPL and Qualcomm’s QCOM partnership is highlighting the beginning of this week’s buying and selling session as buyers await CPI knowledge on Wednesday.

Easing inflation has been sort to Apple’s inventory which has climbed +38% this 12 months versus Qualcomm’s virtully flat efficiency. Nonetheless, Qualcomm’s inventory spiked roughly +4% at the moment with Apple’s fill up +0.66%. The continuation of their partnership is reassuring to Qualcomm buyers because it was scheduled to finish this 12 months however has now been prolonged to 2026.

After all, there are rising considerations that the Chinese language goverment will proceed its efforts to ban iPhones domestically which can naturally have an effect on Qualcomm as nicely. Nevertheless, momentum is constructing for each tech giants with Apple scheduled to launch its iPhone 15 on Tuesday and Qualcomm now solidified with offering its modem chips for the foreseeable future.

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Partnership Progress (EPS)

Beginning their partnership in 2019, Apple and Qualcomm have skilled regular progress however expect dips of their high and backside traces this 12 months.

Principally attributed to inflationary pressures and a softer restoration in China, Qualcomm’s fiscal 2023 outcomes are being affected essentially the most. With that being stated, Qualcomm is coming off a report 12 months that noticed earnings at $12.53 per share with FY23 EPS projected to drop to $8.31 a share.

Qualcomm’s FY24 earnings are forecasted to stabilize and rise 10% to $9.13 per share. Plus, FY24 projections would nonetheless symbolize 134% EPS progress because the firm launched its partnership with Apple and posted earnings of $3.54 a share in 2019.  

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As for Apple, annual earnings are anticipated to dip -1% this 12 months however rebound and rise 9% in FY24 to $6.60 per share. Extra spectacular, FY24 projections would symbolize 122% EPS progress since its Qualcomm partnership with Apple’s 2019 earnings at $2.97 a share.

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Partnership Efficiency

Since their partnership formally began in April of 2019, Apple’s inventory has now skyrocketed +265% with Qualcomm shares hovering +90%. Each have outperformed the Nasdaq’s +70% and the S&P 500’s +54% throughout this time span.

Even higher, when together with dividends, Apple’s whole return is +278% with Qualcomm at +111% to simply high the broader indexes.

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Dividend Increase

As forementioned of their whole returns, Apple and Qualcomm have continued to spice up their dividends since their partnership began. Qualcomm definitely stands out with a 2.91% annual yield that towers over the S&P 500’s 1.36% common.

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Whereas Apple presents a modest 0.54% dividend yield, it has elevated in every of the final 5 years at a 6.07% progress fee which is simply above Qualcomm’s 5.35%.

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Backside Line

Contemplating their inventory performances and progress since partnering, Apple and Qualcomm have complemented one another fairly nicely. For now, Apple and Qualcomm’s inventory each land a Zacks Rank #3 (Maintain).

Whereas there are nonetheless fears of an additional crackdown on iPhones in China, these firms ought to proceed to mutually profit one another and reward longer-term buyers.

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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.

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