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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 $120.16, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Heading into today, shares of the chipmaker had gained 0.51% over the past month, lagging the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $2.15, down 33.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.07 billion, down 18.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.34 per share and revenue of $37.82 billion, which would represent changes of -25.46% and -14.43%, respectively, from the prior year.
It is also important to note the 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.
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.
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 0.07% higher. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 12.97. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.97.
Meanwhile, QCOM's PEG ratio is currently 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.56 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 93, which puts it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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 $120.16, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Heading into today, shares of the chipmaker had gained 0.51% over the past month, lagging the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $2.15, down 33.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.07 billion, down 18.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.34 per share and revenue of $37.82 billion, which would represent changes of -25.46% and -14.43%, respectively, from the prior year.
It is also important to note the 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.
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.
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 0.07% higher. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 12.97. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.97.
Meanwhile, QCOM's PEG ratio is currently 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.56 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 93, which puts it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.