In the latest trading session, Qualcomm (QCOM) closed at $181.97, marking a +2.88% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.96%.
The stock of chipmaker has risen by 7.34% in the past month, leading the Computer and Technology sector's loss of 0.56% and the S&P 500's loss of 1.96%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's earnings per share (EPS) are projected to be $2.18, reflecting a 27.33% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.16 billion, indicating a 9.83% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.54 per share and revenue of $42.89 billion. These totals would mark changes of -12.39% and -2.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.34% lower. Qualcomm is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 16.78. This signifies a discount in comparison to the average Forward P/E of 34.82 for its industry.
One should further note that QCOM currently holds a PEG ratio of 2.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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