5 Cheap DRIP Stocks to Buy Now

In this article, we will take a look at the 5 Cheap DRIP Stocks to Buy Now. For deeper discussion and analysis, have a look at the 14 Cheap DRIP Stocks to Buy Now. 

5. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E: 13.95

On March 30, Goldman Sachs analyst James Schneider initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM) with a Neutral rating and a $135 price target, implying about 4% upside. The analyst said the company is working to diversify its revenue by using its intellectual property to expand into adjacent markets such as automotive, PCs, and data centers. At the same time, Goldman believes these efforts could be partly offset by share losses at key smartphone customers, including Apple. The firm noted that these losses may act as a headwind to Qualcomm’s fundamentals.

A few days earlier, on March 26, Bernstein downgraded Qualcomm to Market Perform from Outperform. It lowered its price target to $140 from $175. The firm pointed to memory-related pressures, saying higher prices are having a “deleterious effect” on overall smartphone shipments. It added that consensus estimates for Qualcomm now appear “too high.” Bernstein also said that potential positives, including share buybacks and the company’s data center initiatives, may not be enough to offset weaker smartphone demand. It also flagged risk tied to the possible expiration of the Apple license agreement within the next year.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes core technologies for the wireless industry, including 3G, 4G, and 5G connectivity, as well as high-performance, low-power computing and on-device artificial intelligence.