In the latest close session, Qualcomm (QCOM) was up +1.49% at $156.37. The stock's performance was ahead of the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Prior to today's trading, shares of the chipmaker had lost 11.83% lagged the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company is predicted to post an EPS of $3.37, indicating a 1.17% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $12.23 billion, showing a 4.83% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12 per share and a revenue of $45.33 billion, indicating changes of -0.25% and +2.69%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.67% lower. 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 12.84. This indicates a discount in contrast to its industry's Forward P/E of 36.82.
We can additionally observe that QCOM currently boasts a PEG ratio of 2.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.97.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 48, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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