Qualcomm (NASDAQ:QCOM) and Paycom Software (NYSE:PAYC) have little in common, with one company being a human resource and payroll software company, and the former being a Semiconductor name, with the company having its tentacles in several segments, including 5G, Smart Homes, Modem RF Systems, and Processors. Both companies have a history of strong earnings growth and just came off solid quarters, with QCOM growing its quarterly EPS by 76% year-over-year and PAYC reporting 31% quarterly EPS growth. Meanwhile, both names have held up much better than their tech peers, with PAYC and QCOM both above rising 200-day moving averages. Let’s take a closer look at each company below:.We’ve seen a violent correction in many tech names over the past couple of weeks, and the Nasdaq-100 (QQQ) is now down more than 5% from its highs. However, the size of the correction doesn’t properly highlight the damage underneath the hood of the market. This is evidenced by more than 70% of stocks being below their 50-day moving averages, and nearly 75% of sectors are below their 200-day moving averages. Despite the brief bout of significant selling pressure we’ve seen, there’s still minimal fear out there, with no significant increase in put-buying just yet.
This suggests that the market could certainly head lower before we see a durable bottom. The good news is that the best time to build a shopping list is when the market is in a correction, given that high-quality names can be bought at very reasonable prices. In this update, we’ll look at two names that look set for a strong year ahead and assess their ideal buy-points if this correction continues.
(Source: TC2000.com)