In the latest close session, Qualcomm (QCOM) was down 3.2% at $178.10. This move lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
The stock of chipmaker has fallen by 16.68% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Qualcomm will be of great interest to investors. It is anticipated that the company will report an EPS of $2.21, marking a 20.22% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.7 billion, showing a 6.46% drop compared to the year-ago quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.77 per share and revenue of $42.67 billion. These results would represent year-over-year changes of -10.47% and -3.32%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Qualcomm presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 17.09. For comparison, its industry has an average Forward P/E of 45.9, which means Qualcomm is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 4.05. 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. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.75 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% 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).