We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $186.20, marking a +0.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.
Coming into today, shares of the chipmaker had gained 2.36% in the past month. In that same time, the Computer and Technology sector gained 2.85%, while the S&P 500 gained 4.32%.
Qualcomm will be looking to display strength as it nears its next earnings release. On that day, Qualcomm is projected to report earnings of $3 per share, which would represent year-over-year growth of 38.25%. Meanwhile, our latest consensus estimate is calling for revenue of $10.42 billion, up 26.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.48 per share and revenue of $39.38 billion. These totals would mark changes of +22.72% and +17.32%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is currently a Zacks Rank #2 (Buy).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 17.64. Its industry sports an average Forward P/E of 25.26, so we one might conclude that Qualcomm is trading at a discount comparatively.
We can also see that QCOM currently has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.3 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $186.20, marking a +0.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.33%.
Coming into today, shares of the chipmaker had gained 2.36% in the past month. In that same time, the Computer and Technology sector gained 2.85%, while the S&P 500 gained 4.32%.
Qualcomm will be looking to display strength as it nears its next earnings release. On that day, Qualcomm is projected to report earnings of $3 per share, which would represent year-over-year growth of 38.25%. Meanwhile, our latest consensus estimate is calling for revenue of $10.42 billion, up 26.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.48 per share and revenue of $39.38 billion. These totals would mark changes of +22.72% and +17.32%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is currently a Zacks Rank #2 (Buy).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 17.64. Its industry sports an average Forward P/E of 25.26, so we one might conclude that Qualcomm is trading at a discount comparatively.
We can also see that QCOM currently has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.3 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.