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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $109.39, moving +0.67% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
The chipmaker's shares have seen a decrease of 1.6% over the last month, not keeping up with the Computer and Technology sector's loss of 0.22% and outstripping the S&P 500's loss of 2.29%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company plans to announce its earnings on November 1, 2023. In that report, analysts expect Qualcomm to post earnings of $1.92 per share. This would mark a year-over-year decline of 38.66%. Alongside, our most recent consensus estimate is anticipating revenue of $8.55 billion, indicating a 24.97% downward movement from the same quarter last year.
Investors should also note any recent changes to analyst estimates for Qualcomm. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.47% decrease. Qualcomm is currently a Zacks Rank #3 (Hold).
In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 11.93. This indicates a premium in contrast to its industry's Forward P/E of 11.24.
It's also important to note that QCOM currently trades at a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Wireless Equipment industry stood at 1.15 at the close of the market yesterday.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $109.39, moving +0.67% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
The chipmaker's shares have seen a decrease of 1.6% over the last month, not keeping up with the Computer and Technology sector's loss of 0.22% and outstripping the S&P 500's loss of 2.29%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company plans to announce its earnings on November 1, 2023. In that report, analysts expect Qualcomm to post earnings of $1.92 per share. This would mark a year-over-year decline of 38.66%. Alongside, our most recent consensus estimate is anticipating revenue of $8.55 billion, indicating a 24.97% downward movement from the same quarter last year.
Investors should also note any recent changes to analyst estimates for Qualcomm. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.47% decrease. Qualcomm is currently a Zacks Rank #3 (Hold).
In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 11.93. This indicates a premium in contrast to its industry's Forward P/E of 11.24.
It's also important to note that QCOM currently trades at a PEG ratio of 0.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Wireless Equipment industry stood at 1.15 at the close of the market yesterday.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.