Qualcomm (QCOM) closed the most recent trading day at $158.26, moving +1.26% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.08% for the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
Shares of the chipmaker witnessed a loss of 9.99% over the previous month, beating the performance of the Computer and Technology sector with its loss of 13.17% and underperforming the S&P 500's loss of 8.26%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company is forecasted to report an EPS of $2.79, showcasing a 14.34% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.59 billion, up 12.82% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.76 per share and a revenue of $42.92 billion, indicating changes of +15.07% and +10.17%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.6% increase. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 13.29. This indicates a discount in contrast to its industry's Forward P/E of 25.21.
It's also important to note that QCOM currently trades at a PEG ratio of 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors industry had an average PEG ratio of 1.57 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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 monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
