In the latest trading session, Qualcomm (QCOM) closed at $217.81, up +1.12% from the previous day. The company’s stock price outperformed the S&P 500, which rose 0.23% on the day. Meanwhile, the Dow fell 0.17% and the tech-heavy Nasdaq rose 0.34%.
Heading into today, shares of the semiconductor maker had gained 10.68% over the past month, outpacing the Computer Technology sector’s loss of 2.01% and the S&P 500’s gain of 3.96% in that time period.
The investment community will be closely monitoring Qualcomm’s performance in its upcoming earnings report, as the company’s earnings per share (EPS) are projected to be $2.24, representing year-over-year growth of 19.79%, while our latest consensus estimates are calling for revenue of $9.19 billion, representing year-over-year growth of 8.75%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.87 per share and revenue of $38.17 billion. These totals would represent changes of +17.08% and +6.57%, respectively, from last year.
Additionally, it is informative for investors to monitor recent changes to analyst forecasts for Qualcomm. These revisions help illustrate the ever-changing nature of short-term business trends. As such, positive forecast revisions show analysts are confident in the company’s operating performance and earnings potential.
Research shows that these estimate revisions are directly correlated with near-term share price momentum, so to capitalize on this, we have created the Zacks Rank, a proprietary model which incorporates these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive, outside-audited track record of outperforming expectations, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Qualcomm currently has a Zacks Rank #3 (Hold).
Digging deeper into valuation, Qualcomm currently has a forward price-to-earnings (P/E) ratio of 21.83, which represents a premium compared to its industry’s forward price-to-earnings (P/E) ratio of 15.97.
It’s also worth mentioning that QCOM has a PEG ratio of 2.08. Similar to the widely accepted P/E ratio, the PEG ratio also takes into account a company’s expected earnings growth rate. The average PEG ratio for the Wireless Equipment industry was 1.66 as of yesterday’s close.
The Wireless Equipment industry belongs to the Computer and Technology sector. This industry currently has a Zacks Industry Rank of #214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by determining the average Zacks Rank of the individual stocks that make up the groups, and 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 track these and other stock-moving indicators during the upcoming trading sessions.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
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