Qualcomm (QCOM) closed the most recent trading day at $161.51, moving +1.61% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.85%. Meanwhile, the Dow experienced a rise of 1.36%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The chipmaker's stock has climbed by 1.51% in the past month, falling short of the Computer and Technology sector's gain of 4.39% and the S&P 500's gain of 2.38%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company is forecasted to report an EPS of $2.85, showcasing a 5.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $10.77 billion, reflecting a 5.16% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.87 per share and a revenue of $43.8 billion, representing changes of +16.14% and +12.41%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% higher. Right now, Qualcomm possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 13.39. Its industry sports an average Forward P/E of 31.1, so one might conclude that Qualcomm is trading at a discount comparatively.
It is also worth noting that QCOM currently has a PEG ratio of 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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