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Qualcomm (QCOM) Ascends While Market Falls: Some Facts to Note

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Qualcomm (QCOM - Free Report) closed at $173.55 in the latest trading session, marking a +2.37% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.

Prior to today's trading, shares of the chipmaker had gained 6.51% lagged the Computer and Technology sector's gain of 8.98% and outpaced the S&P 500's gain of 3.08%.

Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company's upcoming EPS is projected at $2.86, signifying a 6.32% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.77 billion, up 5.16% from the year-ago period.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.89 per share and revenue of $43.8 billion. These results would represent year-over-year changes of +16.34% and +12.41%, respectively.

Investors might also notice recent changes to analyst estimates 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 business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 past month, there's been no change in the Zacks Consensus EPS estimate. Qualcomm currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 14.26. Its industry sports an average Forward P/E of 36.44, so one might conclude that Qualcomm is trading at a discount comparatively.

One should further note that QCOM currently holds a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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