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

In the latest trading session, Qualcomm (QCOM) closed at $142.47, marking a +0.74% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.35%.

Prior to today's trading, shares of the chipmaker had gained 5.06% over the past month. This has lagged the Computer and Technology sector's gain of 5.62% and outpaced the S&P 500's gain of 3.64% in that time.

Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be July 28, 2021. On that day, QCOM is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 94.19%. Our most recent consensus estimate is calling for quarterly revenue of $7.64 billion, up 56.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.80 per share and revenue of $32.23 billion. These totals would mark changes of +86.16% and +36.98%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. QCOM currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, QCOM is holding a Forward P/E ratio of 18.13. Its industry sports an average Forward P/E of 18.13, so we one might conclude that QCOM is trading at a no noticeable deviation comparatively.

Also, we should mention that QCOM has a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. QCOM's industry had an average PEG ratio of 2.83 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
 
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