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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $164.60, moving +0.51% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.39%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 1.97%.
Prior to today's trading, shares of the chipmaker had gained 11.91% over the past month. This has outpaced the Computer and Technology sector's gain of 3.17% and the S&P 500's gain of 2.58% in that time.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2021. On that day, QCOM is projected to report earnings of $2.10 per share, which would represent year-over-year growth of 112.12%. Meanwhile, our latest consensus estimate is calling for revenue of $8.30 billion, up 63.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.19 per share and revenue of $30.72 billion. These totals would mark changes of +71.6% and +30.53%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for QCOM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 2.02% higher. QCOM currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, QCOM is holding a Forward P/E ratio of 21.89. Its industry sports an average Forward P/E of 20.27, so we one might conclude that QCOM is trading at a premium comparatively.
It is also worth noting that QCOM currently has a PEG ratio of 1.11. 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 2.25 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 118, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $164.60, moving +0.51% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.39%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 1.97%.
Prior to today's trading, shares of the chipmaker had gained 11.91% over the past month. This has outpaced the Computer and Technology sector's gain of 3.17% and the S&P 500's gain of 2.58% in that time.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2021. On that day, QCOM is projected to report earnings of $2.10 per share, which would represent year-over-year growth of 112.12%. Meanwhile, our latest consensus estimate is calling for revenue of $8.30 billion, up 63.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.19 per share and revenue of $30.72 billion. These totals would mark changes of +71.6% and +30.53%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for QCOM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 2.02% higher. QCOM currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, QCOM is holding a Forward P/E ratio of 21.89. Its industry sports an average Forward P/E of 20.27, so we one might conclude that QCOM is trading at a premium comparatively.
It is also worth noting that QCOM currently has a PEG ratio of 1.11. 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 2.25 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 118, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.