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

Qualcomm (QCOM) closed the most recent trading day at $167.77, moving +1.4% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. The stock of chipmaker has risen by 4.29% in the past month, lagging the Computer and Technology sector's gain of 6.37% and overreaching the S&P 500's gain of 3.68%.The upcoming earnings release of Qualcomm will be of great interest to investors. The company's upcoming EPS is projected at $2.86, signifying a 6.32% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.77 billion, up 5.16% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $11.89 per share and a revenue of $43.63 billion, demonstrating changes of +16.34% and 0%, respectively, from the preceding year. Any recent changes to analyst estimates for Qualcomm should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Qualcomm is currently sporting a Zacks Rank of #3 (Hold). Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 13.93. This indicates a discount in contrast to its industry's Forward P/E of 37.7. Meanwhile, QCOM's PEG ratio is currently 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices. The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 40% of all industries, numbering over 250. The Zacks Industry Rank is ordered 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks