Qualcomm (QCOM) ended the most recent trading session at $158.52. This reflects a change of -0.53% from the previous business day’s closing price. This move lagged the S&P 500’s daily loss of 0.04%. At the same time, the Dow Jones Industrial Average rose 0.07%, while the tech-heavy Nasdaq fell 0.05%.
As of today, shares of the chipmaker had gained 1.89% over the past month. During the same period, the Computer & Technology sector gained 5.93% and the S&P 500 gained 1.05%.
Investors will be paying close attention to Qualcomm’s performance in the upcoming earnings announcement. On this day, Qualcomm is expected to report earnings of $2.92 per share, which would represent year-over-year growth of 6.18%. Meanwhile, our current consensus estimate is projecting revenue of $10.89 billion, representing growth of 9.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.14 per share and revenue of $42.19 billion, which would represent changes of +9% and +8.29%, respectively, from the prior year.
Additionally, investors should note recent revisions to analyst estimates for Qualcomm. These revisions help illustrate the ever-changing nature of short-term business trends. As such, upward estimate revisions represent analyst positivity about the company’s business operations and ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple and practical rating system.
The Zacks Rank system, ranging 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. is producing. Within the past month, the Zacks Consensus EPS estimate has been revised upward by 0.45%. Qualcomm currently carries a Zacks Rank #2 (Buy).
In terms of valuation, Qualcomm currently trades at a forward P/E of 14.3. For comparison, its industry’s average Forward P/E is 16.58, which means Qualcomm is trading at a discount to the group.
Additionally, we can see that QCOM currently sports a PEG ratio of 2.18. The PEG ratio is similar to the frequently used P/E ratio, but this parameter also includes a company’s expected earnings growth trajectory. As of yesterday’s close, the average PEG ratio for the Wireless Equipment industry was 3.42.
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