In the latest market close, Qualcomm (QCOM) reached $158.24, with a -0.99% movement compared to the previous day. This change lagged the S&P 500's 0.54% loss on the day. On the other hand, the Dow registered a loss of 0.53%, and the technology-centric Nasdaq decreased by 0.66%.
Shares of the chipmaker have depreciated by 0.37% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5%.
Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.92, showcasing a 6.18% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.89 billion, indicating a 9.61% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.14 per share and revenue of $42.19 billion. These totals would mark changes of +9% and +8.29%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.45% higher. Currently, Qualcomm is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 14.34. For comparison, its industry has an average Forward P/E of 16.5, which means Qualcomm is trading at a discount to the group.
One should further note that QCOM currently holds a PEG ratio of 2.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 3.47 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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