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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know

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Qualcomm (QCOM - Free Report) closed at $134.22 in the latest trading session, marking a +1% move from the prior day. This change outpaced the S&P 500's 0.47% gain on the day.

Heading into today, shares of the chipmaker had gained 6.64% over the past month, outpacing the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.

Investors will be hoping for strength from QCOM as it approaches its next earnings release. On that day, QCOM is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 94.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.62 billion, up 55.82% from the year-ago period.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $7.79 per share and revenue of $32.18 billion. These results would represent year-over-year changes of +85.92% and +36.77%, respectively.

Investors might also notice recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. QCOM is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note QCOM's current valuation metrics, including its Forward P/E ratio of 17.05. For comparison, its industry has an average Forward P/E of 20.46, which means QCOM is trading at a discount to the group.

Also, we should mention that QCOM has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. QCOM's industry had an average PEG ratio of 2.26 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 130, putting it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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