Back to top

Image: Bigstock

Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Qualcomm (QCOM - Free Report) closed at $124.94 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 0.69% loss on the day.

Prior to today's trading, shares of the chipmaker had lost 11.31% over the past month. This has lagged the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 2.58% in that time.

Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be November 3, 2021. On that day, QCOM is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 55.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.88 billion, up 6.36% from the year-ago period.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 3.56% lower. QCOM is currently a Zacks Rank #3 (Hold).

Investors should also note QCOM's current valuation metrics, including its Forward P/E ratio of 13.8. This represents a discount compared to its industry's average Forward P/E of 19.83.

Also, we should mention that QCOM has a PEG ratio of 0.71. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 3.99 based on yesterday's closing prices.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Published in