Here is What to Know Beyond Why QUALCOMM Incorporated is a Trending Stock - Qualcomm (NASDAQ:QCOM)

　　Revenue Growth Forecast

　　Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

　　In the case of Qualcomm, the consensus sales estimate of $9.19 billion for the current quarter points to a year-over-year change of +8.7%. The $38.16 billion and $41.85 billion estimates for the current and next fiscal years indicate changes of +6.6% and +9.7%, respectively.

　　Last Reported Results and Surprise History

　　Qualcomm reported revenues of $9.39 billion in the last reported quarter, representing a year-over-year change of +1.2%. EPS of $2.44 for the same period compares with $2.15 a year ago.

　　Compared to the Zacks Consensus Estimate of $9.32 billion, the reported revenues represent a surprise of +0.74%. The EPS surprise was +6.09%.

　　The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

　　Valuation

　　Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

　　Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

　　The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

　　Qualcomm is graded C on this front, indicating that it is trading at par with its peers.

　　Bottom Line

　　The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Qualcomm. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

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