Back to top

Image: Bigstock

Qualcomm (QCOM) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

Qualcomm (QCOM - Free Report) closed at $168.13 in the latest trading session, marking a +1.74% move from the prior day. This change outpaced the S&P 500's 0.48% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.

The chipmaker's shares have seen an increase of 6.32% over the last month, surpassing the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.

The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. On that day, Qualcomm is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 5.95%. Alongside, our most recent consensus estimate is anticipating revenue of $10.77 billion, indicating a 5.16% upward movement from the same quarter last year.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.87 per share and revenue of $43.8 billion. These results would represent year-over-year changes of +16.14% and +12.41%, respectively.

Investors might also notice recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 13.92. Its industry sports an average Forward P/E of 34.75, so one might conclude that Qualcomm is trading at a discount comparatively.

Investors should also note that QCOM has a PEG ratio of 1.96 right now. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 24% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Published in