Qualcomm (QCOM) ended the recent trading session at $167.04, demonstrating a +2.2% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.
The chipmaker's shares have seen a decrease of 2.04% over the last month, not keeping up with the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
The upcoming earnings release of Qualcomm will be of great interest to investors. In that report, analysts expect Qualcomm to post earnings of $2.87 per share. This would mark year-over-year growth of 6.69%. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.89 per share and revenue of $43.63 billion. These totals would mark changes of +16.34% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Qualcomm presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 13.75. Its industry sports an average Forward P/E of 38.29, so one might conclude that Qualcomm is trading at a discount comparatively.
We can additionally observe that QCOM currently boasts a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.93 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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