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) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Qualcomm (QCOM - Free Report) closed at $128.85 in the latest trading session, marking a +0.19% move from the prior day. The stock lagged the S&P 500's daily gain of 0.66%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 0.05%.
Coming into today, shares of the chipmaker had lost 12.51% in the past month. In that same time, the Computer and Technology sector lost 8.24%, while the S&P 500 lost 3.79%.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. The company is expected to report EPS of $3.15, up 23.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.38 billion, up 21.91% from the prior-year quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $12.47 per share and revenue of $44.17 billion. These results would represent year-over-year changes of +46.02% and +31.58%, respectively.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Qualcomm currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Qualcomm has a Forward P/E ratio of 10.31 right now. This represents a discount compared to its industry's average Forward P/E of 19.5.
We can also see that QCOM currently has a PEG ratio of 0.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment industry currently had an average PEG ratio of 1.94 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 62, putting it in the top 25% 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:
Image: Bigstock
Qualcomm (QCOM) Gains But Lags Market: What You Should Know
Qualcomm (QCOM - Free Report) closed at $128.85 in the latest trading session, marking a +0.19% move from the prior day. The stock lagged the S&P 500's daily gain of 0.66%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 0.05%.
Coming into today, shares of the chipmaker had lost 12.51% in the past month. In that same time, the Computer and Technology sector lost 8.24%, while the S&P 500 lost 3.79%.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. The company is expected to report EPS of $3.15, up 23.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.38 billion, up 21.91% from the prior-year quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $12.47 per share and revenue of $44.17 billion. These results would represent year-over-year changes of +46.02% and +31.58%, respectively.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Qualcomm currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Qualcomm has a Forward P/E ratio of 10.31 right now. This represents a discount compared to its industry's average Forward P/E of 19.5.
We can also see that QCOM currently has a PEG ratio of 0.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment industry currently had an average PEG ratio of 1.94 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 62, putting it in the top 25% 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.