The latest trading session saw Qualcomm (QCOM) ending at $160.15, denoting a +0.04% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.
Coming into today, shares of the chipmaker had lost 0.63% in the past month. In that same time, the Computer and Technology sector lost 5.94%, while the S&P 500 lost 3.59%.
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 $2.79, indicating a 14.34% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.59 billion, showing a 12.82% escalation compared to the year-ago quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.76 per share and revenue of $42.92 billion. These results would represent year-over-year changes of +15.07% and +10.17%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 past month, the Zacks Consensus EPS estimate has shifted 0.6% upward. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 13.61. This indicates a discount in contrast to its industry's Forward P/E of 25.72.
Meanwhile, QCOM's PEG ratio is currently 1.48. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.58 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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