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Qualcomm (QCOM) Rises But Trails Market: What Investors Should Know

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In the latest market close, Qualcomm (QCOM - Free Report) reached $132.97, with a +0.02% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.45%.

Coming into today, shares of the chipmaker had gained 10.69% in the past month. In that same time, the Computer and Technology sector gained 5.9%, while the S&P 500 gained 4.91%.

The upcoming earnings release of Qualcomm will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 1.27% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.46 billion, up 0.03% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.10 per share and a revenue of $37.41 billion, representing changes of +7.95% and +4.47%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Qualcomm. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. Qualcomm is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 14.61. This signifies no noticeable deviation in comparison to the average Forward P/E of 14.61 for its industry.

It is also worth noting that QCOM currently has a PEG ratio of 1.17. 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 Wireless Equipment was holding an average PEG ratio of 1.27 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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