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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know

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Qualcomm (QCOM - Free Report) closed at $139.22 in the latest trading session, marking a -0.04% move from the prior day. This change lagged the S&P 500's 0.43% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the chipmaker had lost 11.35% over the past month. This has lagged the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.

Investors will be hoping for strength from Qualcomm as it approaches its next earnings release, which is expected to be April 27, 2022. The company is expected to report EPS of $2.91, up 53.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.59 billion, up 33.43% from the year-ago period.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.73 per share and revenue of $42.29 billion. These results would represent year-over-year changes of +37.35% and +25.98%, respectively.

Investors might also notice recent changes to analyst estimates for Qualcomm. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Qualcomm currently has a Forward P/E ratio of 11.87. For comparison, its industry has an average Forward P/E of 21.07, which means Qualcomm is trading at a discount to the group.

We can also see that QCOM currently has a PEG ratio of 0.74. 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. QCOM's industry had an average PEG ratio of 2.14 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 218, putting it in the bottom 14% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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