In the latest trading session, Qualcomm (QCOM) closed at $173.91, adjusting +1.68% from previous closing price. The stock outpaced the S&P 500’s daily gain of 0.11%. Elsewhere, the Dow Jones Industrial Average fell 0.11%, while the tech-heavy Nasdaq rose 0.23%.
Prior to today’s trading, shares of the chipmaker had gained 5.94% over the past month. This outpaced the Computer Technology sector’s 1.54% rise and the S&P 500’s 1.5% rise over that period.
The investment community will be paying close attention to Qualcomm’s earnings performance in upcoming releases. The company’s future EPS is expected to be $2.31, which would represent an increase of 7.44% compared to the same period last year. At the same time, our most recent consensus estimate is projecting revenue of $9.29 billion, representing an increase of 0.19% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $9.57 per share and revenue of $37.54 billion, which would represent changes of +13.52% and +4.83%, respectively, from the prior year.
Investors may also notice recent changes to analyst estimates for Qualcomm. These revisions help illustrate the ever-changing nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate adjustments are directly related to impending stock performance. To benefit from this, we have created the Zacks Rank, a proprietary model that incorporates these estimate changes to provide an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, third-party-audited track record of outperformance, with #1 rated stocks having an average annual Generates a return of +25%. The Zacks Consensus EPS estimate remained stagnant over the past month. Qualcomm is currently sporting a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Qualcomm’s current Forward P/E ratio is 17.88. This valuation represents a premium compared to the industry’s average Forward P/E of 14.72.
Additionally, we note that QCOM currently has a PEG ratio of 1.87. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. Wireless Equipment held his PEG ratio at an average of 1.42 at yesterday’s close.
The wireless equipment industry is part of the computer and technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to track these and other stock price movement metrics during upcoming trading sessions.
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Qualcomm Inc. (QCOM): Free stock price analysis report
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