In this article, we discuss the 5 best upside stocks to buy right now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Upside Stocks to Buy Right Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the best stocks with a lot of upside.
5. QUALCOMM Incorporated (NASDAQ: QCOM)
Number of Hedge Fund Holders: 73
QUALCOMM Incorporated (NASDAQ: QCOM) is a California-based semiconductor manufacturing company. It was founded in 1985 and is ranked fifth on our list of 10 best upside stocks to buy right now. The stock has returned more than 47% to investors over the course of the past twelve months. The products marketed by the company are used in mobile devices, computers, as well as 5G infrastructure across the globe.The company also offers other software and services related to wireless technology.
On April 28, QUALCOMM Incorporated (NASDAQ: QCOM) reported earnings results for the second fiscal quarter, posting earnings per share of $1.90, beating market predictions by $0.23. The revenue over the period was close to $8 billion, up 52% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in QUALCOMM Incorporated (NASDAQ: QCOM) with 3.5 million shares worth more than $472 million.
“Long position Qualcomm Inc. were among the top detractors from performance. Qualcomm is a leading semiconductor company with strong positions in telecommunications end markets that position the company as a primary beneficiary of the innovative 5G network standard roll out. Qualcomm is acknowledged as having the best technology specs for 5G chip sets as evidenced by signing up all 75 major OEMs including Apple. Additionally, beyond handsets, Qualcomm has meaningful growth drivers, including the Internet of Things, automobiles, industrials and gaming that provide the company with potential for generating increased earnings.
While Qualcomm was a notable positive contributor to the portfolio’s absolute and relative returns in 2020, during the first quarter, the share price declined and the position detracted from performance. Market demand for chips has been strong; however, Qualcomm hasn’t been able to fully exploit the demand as it is capacity constrained. Expectations were high for Qualcomm and while the quarter generally exceeded consensus estimates and forward estimates did rise, the street was anticipating a stronger positive surprise. We believe the production capacity constraints should abate in the second half of this year.”