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Qualcomm (QCOM) Registers a Bigger Fall Than the Market: Important Facts to Note

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Qualcomm (QCOM - Free Report) closed the most recent trading day at $167.23, moving -0.72% from the previous trading session. This change lagged the S&P 500's 0.65% loss on the day. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.

The chipmaker's shares have seen an increase of 7.99% over the last month, surpassing the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27%.

Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. On that day, Qualcomm is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 7.44%. Meanwhile, our latest consensus estimate is calling for revenue of $9.29 billion, up 0.19% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.57 per share and revenue of $37.54 billion. These totals would mark changes of +13.52% and +4.83%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Qualcomm is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Qualcomm is currently exchanging hands at a Forward P/E ratio of 17.61. This indicates a premium in contrast to its industry's Forward P/E of 14.88.

One should further note that QCOM currently holds a PEG ratio of 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Wireless Equipment industry had an average PEG ratio of 1.43.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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