Qualcomm (QCOM) closed the latest trading day at $153.61, indicating a +0.58% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the chipmaker had lost 2.83% in the past month. In that same time, the Computer and Technology sector lost 8.88%, while the S&P 500 lost 6.22%.
Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.79, signifying a 14.34% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.59 billion, up 12.82% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.76 per share and a revenue of $42.92 billion, indicating changes of +15.07% and +10.17%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Qualcomm presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 12.98. This denotes a discount relative to the industry's average Forward P/E of 22.88.
We can also see that QCOM currently has a PEG ratio of 1.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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