Qualcomm (QCOM) Laps the Stock Market: Here's Why

The latest trading session saw Qualcomm (QCOM) ending at $173.91, denoting a +1.68% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the chipmaker had gained 5.94% over the past month. This has outpaced the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5% in that time.

The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's upcoming EPS is projected at $2.31, signifying a 7.44% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.29 billion, reflecting a 0.19% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.57 per share and a revenue of $37.54 billion, representing changes of +13.52% and +4.83%, respectively, from the prior year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Qualcomm boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Qualcomm has a Forward P/E ratio of 17.88 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.72.

One should further note that QCOM currently holds a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment was holding an average PEG ratio of 1.42 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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