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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Qualcomm (QCOM) closed at $57.72, marking a +0.65% move from the previous day. This move outpaced the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.95%.

Prior to today's trading, shares of the chipmaker had gained 5.89% over the past month. This has outpaced the Computer and Technology sector's loss of 3.66% and the S&P 500's loss of 4.97% in that time.

Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be January 30, 2019. On that day, QCOM is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 7.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, down 19.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.89 per share and revenue of $20.55 billion. These totals would mark changes of +5.42% and -9.58%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges 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. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, QCOM is holding a Forward P/E ratio of 14.73. This represents a discount compared to its industry's average Forward P/E of 23.36.

It is also worth noting that QCOM currently has a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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.


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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