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Qualcomm (QCOM) closed the most recent trading day at $161.51, moving +1.61% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.85%. Meanwhile, the Dow experienced a rise of 1.36%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The chipmaker’s stock has climbed by 1.51% in the past month, falling short of the Computer and Technology sector’s gain of 4.39% and the S&P 500’s gain of 2.38%.
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 $2.85, showcasing a 5.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $10.77 billion, reflecting a 5.16% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.87 per share and a revenue of $43.8 billion, representing changes of +16.14% and +12.41%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.18% higher. Right now, Qualcomm possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 13.39. Its industry sports an average Forward P/E of 31.1, so one might conclude that Qualcomm is trading at a discount comparatively.
It is also worth noting that QCOM currently has a PEG ratio of 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Electronics – Semiconductors industry currently had an average PEG ratio of 1.88 as of yesterday’s close.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 22% of all 250+ industries.
