Shares of Qualcomm Inc. (NASDAQ: QCOM) have been stuck in a frustrating trading range for months despite the chipmaker consistently delivering strong financial results. The stock is down 10 percent since the last week of February and has been testing the lower end of its range from December. While part of this decline is due to the broader market selloff and the cooling investor sentiment around tech stocks, Qualcomm’s underperformance relative to peers seems increasingly disconnected from its fundamentals.
At $158, the tech stock is now trading at 2021 levels, despite posting record revenue and one of its most profitable EPS prints in years. This combination of strong financial performance and a beaten-down stock price means that Qualcomm is now sitting at a price-to-earnings (PE) ratio of just 17.
