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Why Qualcomm (QCOM) Outpaced the Stock Market Today
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The latest trading session saw Qualcomm (QCOM - Free Report) ending at $169.13, denoting a +1.23% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 0.51%.
The chipmaker's stock has climbed by 5.54% in the past month, exceeding the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.
The upcoming earnings release of Qualcomm will be of great interest to investors. The company's upcoming EPS is projected at $2.31, signifying a 7.44% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.29 billion, up 0.19% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.57 per share and revenue of $37.54 billion, indicating changes of +13.52% and +4.83%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Qualcomm is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Qualcomm is currently exchanging hands at a Forward P/E ratio of 17.46. For comparison, its industry has an average Forward P/E of 14.84, which means Qualcomm is trading at a premium to the group.
Meanwhile, QCOM's PEG ratio is currently 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why Qualcomm (QCOM) Outpaced the Stock Market Today
The latest trading session saw Qualcomm (QCOM - Free Report) ending at $169.13, denoting a +1.23% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.86%. Elsewhere, the Dow gained 1.22%, while the tech-heavy Nasdaq added 0.51%.
The chipmaker's stock has climbed by 5.54% in the past month, exceeding the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.
The upcoming earnings release of Qualcomm will be of great interest to investors. The company's upcoming EPS is projected at $2.31, signifying a 7.44% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.29 billion, up 0.19% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.57 per share and revenue of $37.54 billion, indicating changes of +13.52% and +4.83%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Qualcomm is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Qualcomm is currently exchanging hands at a Forward P/E ratio of 17.46. For comparison, its industry has an average Forward P/E of 14.84, which means Qualcomm is trading at a premium to the group.
Meanwhile, QCOM's PEG ratio is currently 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.