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

Qualcomm (QCOM) closed the most recent trading day at $116.35, moving +1.02% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.

Prior to today's trading, shares of the chipmaker had gained 8.19% over the past month. This has lagged the Computer and Technology sector's gain of 9.07% and outpaced the S&P 500's gain of 3.44% in that time.

Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. In that report, analysts expect Qualcomm to post earnings of $1.81 per share. This would mark a year-over-year decline of 38.85%. Our most recent consensus estimate is calling for quarterly revenue of $8.51 billion, down 22.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.25 per share and revenue of $35.9 billion. These totals would mark changes of -34.16% and -18.77%, respectively, from last 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Qualcomm is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 13.95. This valuation marks a discount compared to its industry's average Forward P/E of 14.35.

We can also see that QCOM currently has a PEG ratio of 0.89. 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 Wireless Equipment industry currently had an average PEG ratio of 2.05 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 187, which puts it in the bottom 26% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

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Zacks Investment Research