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Qualcomm (QCOM) Gains As Market Dips: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $131.02, moving +0.98% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq added 0.76%.
Coming into today, shares of the chipmaker had lost 9.84% in the past month. In that same time, the Computer and Technology sector lost 6.54%, while the S&P 500 gained 0.17%.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be April 28, 2021. In that report, analysts expect QCOM to post earnings of $1.67 per share. This would mark year-over-year growth of 89.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.63 billion, up 46.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.35 per share and revenue of $31.09 billion. These totals would mark changes of +75.42% and +32.1%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest 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 remained stagnant. QCOM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 17.66 right now. For comparison, its industry has an average Forward P/E of 20.95, which means QCOM is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 0.92. 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. QCOM's industry had an average PEG ratio of 1.75 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 67, putting it in the top 27% 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 As Market Dips: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $131.02, moving +0.98% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq added 0.76%.
Coming into today, shares of the chipmaker had lost 9.84% in the past month. In that same time, the Computer and Technology sector lost 6.54%, while the S&P 500 gained 0.17%.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be April 28, 2021. In that report, analysts expect QCOM to post earnings of $1.67 per share. This would mark year-over-year growth of 89.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.63 billion, up 46.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.35 per share and revenue of $31.09 billion. These totals would mark changes of +75.42% and +32.1%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest 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 remained stagnant. QCOM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 17.66 right now. For comparison, its industry has an average Forward P/E of 20.95, which means QCOM is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 0.92. 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. QCOM's industry had an average PEG ratio of 1.75 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 67, putting it in the top 27% 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.