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

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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $217.81, marking a +1.12% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.23% for the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

Heading into today, shares of the chipmaker had gained 10.68% over the past month, outpacing the Computer and Technology sector's loss of 2.01% and the S&P 500's gain of 3.96% in that time.

The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.24, reflecting a 19.79% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.19 billion, indicating an 8.75% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.87 per share and revenue of $38.17 billion. These totals would mark changes of +17.08% and +6.57%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% upward. Qualcomm currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Qualcomm currently has a Forward P/E ratio of 21.83. This indicates a premium in contrast to its industry's Forward P/E of 15.97.

Also, we should mention that QCOM has a PEG ratio of 2.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Wireless Equipment industry currently had an average PEG ratio of 1.66 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 214, positioning it in the bottom 16% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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