In the latest close session, Qualcomm (QCOM) was down 2.98% at $242.57. This move lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.
Heading into today, shares of the chipmaker had gained 29.83% over the past month, outpacing the Computer and Technology sector's gain of 10.03% and the S&P 500's gain of 4.59%.
Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. On that day, Qualcomm is projected to report earnings of $2.27 per share, which would represent a year-over-year decline of 18.05%. In the meantime, our current consensus estimate forecasts the revenue to be $9.7 billion, indicating a 6.46% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.79 per share and a revenue of $42.92 billion, demonstrating changes of -10.31% and -2.76%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Qualcomm. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.38% decrease. At present, Qualcomm boasts a Zacks Rank of #4 (Sell).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 23.17. For comparison, its industry has an average Forward P/E of 51.74, which means Qualcomm is trading at a discount to the group.
We can also see that QCOM currently has a PEG ratio of 22.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.18.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).