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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $116.55 in the latest trading session, marking a +1.85% move from the prior day. This move outpaced the S&P 500's daily gain of 1.68%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.
Heading into today, shares of the chipmaker had lost 12.54% over the past month, lagging the Computer and Technology sector's loss of 4.48% and the S&P 500's loss of 6.68% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. In that report, analysts expect Qualcomm to post earnings of $2.15 per share. This would mark a year-over-year decline of 33.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.06 billion, down 18.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.51 per share and revenue of $37.99 billion. These totals would mark changes of -24.1% and -14.06%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Qualcomm is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 12.03. This represents a premium compared to its industry's average Forward P/E of 11.74.
Investors should also note that QCOM has a PEG ratio of 0.77 right now. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.41 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
Qualcomm (QCOM - Free Report) closed at $116.55 in the latest trading session, marking a +1.85% move from the prior day. This move outpaced the S&P 500's daily gain of 1.68%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.
Heading into today, shares of the chipmaker had lost 12.54% over the past month, lagging the Computer and Technology sector's loss of 4.48% and the S&P 500's loss of 6.68% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. In that report, analysts expect Qualcomm to post earnings of $2.15 per share. This would mark a year-over-year decline of 33.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.06 billion, down 18.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.51 per share and revenue of $37.99 billion. These totals would mark changes of -24.1% and -14.06%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Qualcomm is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 12.03. This represents a premium compared to its industry's average Forward P/E of 11.74.
Investors should also note that QCOM has a PEG ratio of 0.77 right now. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.41 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.