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Qualcomm (QCOM) Gains As Market Dips: What You Should Know

In the latest trading session, Qualcomm (QCOM) closed at $125.28, marking a +0.31% move from the previous day. This move outpaced the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.15%, and the Nasdaq, a tech-heavy index, added 0.39%.

Coming into today, shares of the chipmaker had lost 2.88% in the past month. In that same time, the Computer and Technology sector lost 4.49%, while the S&P 500 lost 3.51%.

Qualcomm will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.15, up 23.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.38 billion, up 21.91% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is currently a Zacks Rank #3 (Hold).

In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 9.8. For comparison, its industry has an average Forward P/E of 19.31, which means Qualcomm is trading at a discount to the group.

Investors should also note that QCOM has a PEG ratio of 0.63 right now. 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. The Wireless Equipment was holding an average PEG ratio of 2.1 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.

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

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