Qualcomm (QCOM) closed at $171.05 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Coming into today, shares of the chipmaker had gained 1.73% in the past month. In that same time, the Computer and Technology sector gained 0.14%, while the S&P 500 gained 0.79%.
Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.38, showcasing a 0.88% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.25 billion, up 4.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.15 per share and revenue of $45.69 billion, which would represent changes of +1% and +3.52%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. Qualcomm is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 14.29. This denotes a discount relative to the industry average Forward P/E of 35.99.
Investors should also note that QCOM has a PEG ratio of 3.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.04.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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