In the latest trading session, Qualcomm (QCOM) closed at $174.19, marking a +1.07% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.38%.
Shares of the chipmaker have appreciated by 3.75% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.85%, and the S&P 500's gain of 0.87%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. It is anticipated that the company will report an EPS of $3.38, marking a 0.88% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $12.25 billion, up 4.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.15 per share and revenue of $45.69 billion. These totals would mark changes of +1% and +3.52%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Qualcomm is currently exchanging hands at a Forward P/E ratio of 14.19. This indicates a discount in contrast to its industry's Forward P/E of 32.69.
Investors should also note that QCOM has a PEG ratio of 3.09 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% 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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