Qualcomm Down 39% YTD But Still Not Cheap Enough, This Expert Says

On CNBC, Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, said Qualcomm Inc QCOM is down 39% year to date.

He added that the company did the same thing last quarter, beating top- and bottom-lines and issuing a lower forecast.

The company’s stock is trading at 10 times P/E ratio, compared to an average of 17 over the last decade and 25 times for the semis. Brown said that Qualcomm seems to be a "cheap stock" in both absolute terms and relative to the group. However, there are still cycles and "cheap inside of a downshift in the cycle is never going to be cheap enough."

Qualcomm fiscal fourth-quarter revenue grew 22% year-over-year to $11.39 billion, which beat average analyst estimates of $11.37 billion. The company reported quarterly earnings of $3.13 per share, in line with average estimates.

The company said it sees fiscal first-quarter revenue between $9.2 billion and $10 billion versus average estimates of $12.02 billion. Management guided to first-quarter adjusted earnings between $2.25 and $2.45 per share versus average estimates of $3.42 per share.

QCOM Price Action: Qualcomm's shares fell 6.8% to $104.90 in pre-market trading.