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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $149.95 in the latest trading session, marking a +0.98% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the chipmaker had lost 1.83% over the past month, lagging the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 2.59% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release. The company is expected to report EPS of $2.09, up 111.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.28 billion, up 63.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.14 per share and revenue of $30.54 billion. These totals would mark changes of +70.41% and +29.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.98% higher within the past month. QCOM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, QCOM is holding a Forward P/E ratio of 20.8. For comparison, its industry has an average Forward P/E of 22.13, which means QCOM is trading at a discount to the group.
It is also worth noting that QCOM currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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 (QCOM) Outpaces Stock Market Gains: What You Should Know
Qualcomm (QCOM - Free Report) closed at $149.95 in the latest trading session, marking a +0.98% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the chipmaker had lost 1.83% over the past month, lagging the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 2.59% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release. The company is expected to report EPS of $2.09, up 111.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.28 billion, up 63.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.14 per share and revenue of $30.54 billion. These totals would mark changes of +70.41% and +29.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.98% higher within the past month. QCOM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, QCOM is holding a Forward P/E ratio of 20.8. For comparison, its industry has an average Forward P/E of 22.13, which means QCOM is trading at a discount to the group.
It is also worth noting that QCOM currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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.