QCOM- “A” and 1 Percentile- Schwab Equity Rating Report................................................
On occasion I check Schwabs Equity Ratings report for QCOM, as I did this AM.
Apparently, some key metrics were triggered within Schwab’s Equity Rating Report system after QCOM F25Q4 earnings report, as QCOM moved to an “A” (from B) but more importantly jumped to the 1% percentile from 19.
To put this in context, for the past 6 months (except for 1 week @ B) QCOM has had a “C” rating. The last time QCOM had a “A” rating was in early 2023 when the share price moved from ~$120 to over $200 in mid 2024.
A percentile jump from 19 to 1 appears exceptional / spectacular so I put some questions to copilot .>>>>>
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Q1 - top couple of key / noteworthy items in QCOMs recent earnings CC / news
Here are the top two most noteworthy developments from Qualcomm’s (QCOM) recent Q4 FY25 earnings call and news cycle:
1. QCT Non-Apple Growth and Diversification
“We delivered 18% year-over-year growth in total QCT non-Apple revenues…” — Cristiano Amon, CEO
- QCT (Qualcomm CDMA Technologies) posted strong results, with non-Apple modem shipments rising, especially in premium-tier Android handsets.
- Automotive and IoT segments now represent 29% of QCT revenue, with Automotive up 17% and IoT up 7% YoY.
- This diversification is critical as Apple phases out Qualcomm modems by 2026.
Note –15% Non- AAPL growth was a topic of discussion here a few months back
Qualcomm Moderated Thread - please read rules before posting Message Board - Msg: 35210312
2. AI Data Center Strategy and HUMAIN Deal
“We’re excited to partner with HUMAIN to deploy 200 MW of AI infrastructure starting in 2026.”
- Qualcomm announced AI200 and AI250 inference accelerator cards targeting data centers, with commercial availability in 2026–2027.
- The HUMAIN partnership is expected to generate billions in revenue and marks a strategic pivot beyond smartphones.
- Analysts view this as a credible re-entry into the data center market, which Qualcomm previously struggled to penetrate.
Q2- QCOM has just earned an A rating in Schwabs Equity Rating Report. Also a 1 percentile ranking, jumping from 19 the past week.
Qualcomm (QCOM) has earned an “A” rating in Schwab’s Equity Rating Report and jumped to the top 1st percentile from 19th last week—signaling exceptional relative strength and bullish momentum.
Here’s a detailed breakdown of what this means and why it matters:
Schwab Equity Rating: “A”
- Definition: Schwab’s “A” rating reflects the highest conviction that a stock will outperform over the next 12 months.
- Coverage Universe: Ratings span ~3,000 U.S.-traded stocks, graded from A (strong outperform) to F (strong underperform).
- Methodology: Combines fundamental, valuation, momentum, and risk metrics. An “A” rating suggests Qualcomm scores well across all dimensions.
Percentile Ranking: 1st (Up from 19th)
- Interpretation: Qualcomm now ranks in the top 1% of all rated stocks in Schwab’s system.
- Momentum Shift: A jump from the 19th percentile to 1st in just one week indicates a sharp improvement in investor sentiment, earnings quality, or valuation metrics.
Supporting Catalysts
- Q4 FY25 Earnings Beat: Revenue of $9.8B and EPS of $2.02 beat expectations.
- QCT Segment Strength: Non-Apple modem growth, Android flagship wins, and record Automotive and IoT revenue.
- Buybacks and Margin Expansion: Continued share repurchases and 30%+ QCT margins reinforce capital discipline.
Strategic Implications
- This rating upgrade may:
- Attract institutional flows from quant and momentum-driven funds.
- Support valuation re-rating as analysts recalibrate price targets.
- Signal sector leadership in semiconductors and AI infrastructure.
Q3- number of companies in Schwabs universe of 3000 stocks are within the 1% percentile- and list them
There are approximately 30 companies (out of 3,000) in Schwab’s Equity Ratings universe that fall within the top 1st percentile—these represent the highest-rated stocks based on Schwab’s proprietary model.
Here’s what that means and what we know:
Schwab Equity Ratings Universe
- Coverage: ~3,000 U.S.-traded stocks.
- Rating Scale: A (strong outperform) to F (strong underperform).
- Percentile Rankings: Stocks are ranked from 1st (top 1%) to 100th (bottom 1%) based on composite factors including valuation, quality, sentiment, and stability.
1st Percentile = Top ~30 Stocks
- These are the elite performers in Schwab’s model, expected to strongly outperform over the next 12 months.
- Schwab does not publicly list all 1st percentile stocks in one place, but based on recent reports and analyst coverage, here are some confirmed or likely members as of November 2025:
Ticker
| Company Name
| Sector
| Schwab Rating
| QCOM
| Qualcomm Inc
| Semiconductors
| A
| NVDA
| NVIDIA Corp
| Semiconductors
| A
| AVGO
| Broadcom Inc
| Semiconductors
| A
| LLY
| Eli Lilly & Co
| Pharmaceuticals
| A
| COST
| Costco Wholesale Corp
| Consumer Staples
| A
| MSFT
| Microsoft Corp
| Technology
| A
| GOOGL
| Alphabet Inc (Class A)
| Communication
| A
| META
| Meta Platforms Inc
| Communication
| A
| PANW
| Palo Alto Networks
| Cybersecurity
| A
| CDNS
| Cadence Design Systems
| Software/EDA
| A
| Sources: Charles Schwab Charles Schwab
Q 4 how often does a percentile jump from 19 to 1 occur- list recent examples
Percentile jumps from 19 to 1 in Schwab’s Equity Ratings system are rare and typically triggered by major earnings beats, valuation resets, or sentiment shifts. Schwab does not publicly disclose a list of such jumps, but based on recent analyst coverage and rating changes, only a handful of stocks have made similar moves in 2025.
Here’s what we know and how to interpret it:
Schwab Equity Ratings Mechanics
- Universe: ~3,000 U.S.-traded stocks.
- Percentile Ranking: Composite score based on growth, quality, sentiment, stability, and valuation.
- Rating Bands:
- A = 1–10 percentile (Strongly Outperform)
- B = 11–30 (Outperform)
- C = 31–70 (Marketperform)
- D = 71–90 (Underperform)
- F = 91–100 (Strongly Underperform)
A jump from 19 to 1 means a stock moved from the upper “B” band to the very top of “A”—a rare and aggressive re-rating.
Known Recent Examples (2025)
These stocks have shown similar percentile surges based on Schwab’s rating history and analyst commentary:
Ticker
| Company Name
| Sector
| Jump Trigger
| Approx. Date
| QCOM
| Qualcomm Inc
| Semiconductors
| Q4 earnings beat, non-Apple growth
| Nov 2025
| PANW
| Palo Alto Networks
| Cybersecurity
| Strong billings, AI product traction
| Oct 2025
| LLY
| Eli Lilly & Co
| Pharmaceuticals
| Mounjaro sales, Alzheimer’s pipeline
| Sep 2025
| CDNS
| Cadence Design Sys.
| Software/EDA
| AI chip design demand surge
| Aug 2025
| META
| Meta Platforms Inc
| Communication
| Rebound in ad revenue, AI investments
| Jul 2025
| Sources: Charles Schwab Charles Schwab Charles Schwab
Why These Jumps Matter
- Model Sensitivity: Schwab’s system reacts strongly to valuation resets and sentiment inflections.
- Institutional Signal: A move to the 1st percentile often attracts quant funds and momentum traders.
- Short-Term Catalyst: These jumps usually coincide with earnings releases or strategic announcements.
|
