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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $162.26, moving -1.87% from the previous trading session. This change lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.48%.
Heading into today, shares of the chipmaker had lost 7.68% over the past month, lagging the Computer and Technology sector's loss of 4.07% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. On that day, Qualcomm is projected to report earnings of $2.91 per share, which would represent year-over-year growth of 53.16%. Our most recent consensus estimate is calling for quarterly revenue of $10.59 billion, up 33.46% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.76 per share and revenue of $42.39 billion. These results would represent year-over-year changes of +37.7% and +26.3%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 10.6% higher. Qualcomm is currently a Zacks Rank #2 (Buy).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 14.06. Its industry sports an average Forward P/E of 23.78, so we one might conclude that Qualcomm is trading at a discount comparatively.
Also, we should mention that QCOM has a PEG ratio of 0.88. 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. The Wireless Equipment was holding an average PEG ratio of 2.15 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 70, which puts it in the top 28% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $162.26, moving -1.87% from the previous trading session. This change lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.48%.
Heading into today, shares of the chipmaker had lost 7.68% over the past month, lagging the Computer and Technology sector's loss of 4.07% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. On that day, Qualcomm is projected to report earnings of $2.91 per share, which would represent year-over-year growth of 53.16%. Our most recent consensus estimate is calling for quarterly revenue of $10.59 billion, up 33.46% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.76 per share and revenue of $42.39 billion. These results would represent year-over-year changes of +37.7% and +26.3%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 10.6% higher. Qualcomm is currently a Zacks Rank #2 (Buy).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 14.06. Its industry sports an average Forward P/E of 23.78, so we one might conclude that Qualcomm is trading at a discount comparatively.
Also, we should mention that QCOM has a PEG ratio of 0.88. 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. The Wireless Equipment was holding an average PEG ratio of 2.15 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 70, which puts it in the top 28% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.