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Qualcomm (QCOM) Gains As Market Dips: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $130.26 in the latest trading session, marking a +1.24% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the chipmaker had lost 3.92% in the past month. In that same time, the Computer and Technology sector lost 8.38%, while the S&P 500 lost 6.69%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. The company is expected to report EPS of $2.86, up 48.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.89 billion, up 35.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.54 per share and revenue of $44.75 billion, which would represent changes of +46.84% and +33.31%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 10.26. For comparison, its industry has an average Forward P/E of 18.89, which means Qualcomm is trading at a discount to the group.
We can also see that QCOM currently has a PEG ratio of 0.63. 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 1.68 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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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Qualcomm (QCOM) Gains As Market Dips: What You Should Know
Qualcomm (QCOM - Free Report) closed at $130.26 in the latest trading session, marking a +1.24% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the chipmaker had lost 3.92% in the past month. In that same time, the Computer and Technology sector lost 8.38%, while the S&P 500 lost 6.69%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. The company is expected to report EPS of $2.86, up 48.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.89 billion, up 35.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.54 per share and revenue of $44.75 billion, which would represent changes of +46.84% and +33.31%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 10.26. For comparison, its industry has an average Forward P/E of 18.89, which means Qualcomm is trading at a discount to the group.
We can also see that QCOM currently has a PEG ratio of 0.63. 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 1.68 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.