Qualcomm Maintains the Right Frequency

October was not the kindest month for technology stocks. Led by approximate 10% declines in tech stalwarts Apple (AAPL) and Google (GOOG), the sector lagged the overall market by about 4% for the month (see the chart below). Some of the key challenges across the industry are the migration from PCs to mobile devices and the problems in Europe, which account for about 25% of overall technology sales. Although I believe these challenges will continue to be present over the coming months, I have used the selloff in the sector to add to some of my core holdings, including EMC (EMC), which I wrote about recently, and Qualcomm (QCOM). QCOM is not as sexy a pick as Apple or Google, but it offers more clarity and consistency right now.

October Tech Sector Performance Source: Yahoo! Finance View Chart » View in New Window »

Unlike either Apple or Google, Qualcomm's earnings estimates for fiscal 2012 and fiscal 2013 have not been taken down significantly over the past few months. In fact, they have edged up a tick over the past two months. In addition, the company does not have wild swings around earnings periods. It has beaten estimates for 11 out of the last 12 quarters. Apple and Google tend to beat or miss significantly on their earnings reports....250 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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