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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $130.70, marking a -0.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Coming into today, shares of the chipmaker had gained 18.22% in the past month. In that same time, the Computer and Technology sector gained 11.67%, while the S&P 500 gained 4.64%.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be February 2, 2023. In that report, analysts expect Qualcomm to post earnings of $2.35 per share. This would mark a year-over-year decline of 27.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.56 billion, down 10.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.14 per share and revenue of $39.61 billion, which would represent changes of -19.07% and -10.38%, respectively, from the prior year.
Investors should also note any 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.
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.
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 has moved 1.16% lower. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 12.93. Its industry sports an average Forward P/E of 14.4, so we one might conclude that Qualcomm is trading at a discount comparatively.
It is also worth noting that QCOM currently has a PEG ratio of 0.83. 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 1.66 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 103, which puts it in the top 41% 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
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $130.70, marking a -0.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Coming into today, shares of the chipmaker had gained 18.22% in the past month. In that same time, the Computer and Technology sector gained 11.67%, while the S&P 500 gained 4.64%.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be February 2, 2023. In that report, analysts expect Qualcomm to post earnings of $2.35 per share. This would mark a year-over-year decline of 27.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.56 billion, down 10.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.14 per share and revenue of $39.61 billion, which would represent changes of -19.07% and -10.38%, respectively, from the prior year.
Investors should also note any 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.
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.
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 has moved 1.16% lower. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 12.93. Its industry sports an average Forward P/E of 14.4, so we one might conclude that Qualcomm is trading at a discount comparatively.
It is also worth noting that QCOM currently has a PEG ratio of 0.83. 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 1.66 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 103, which puts it in the top 41% 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.