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Qualcomm (QCOM) Exceeds Market Returns: Some Facts to Consider
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In the latest market close, Qualcomm (QCOM - Free Report) reached $141.54, with a +1.97% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.19%.
Shares of the chipmaker witnessed a gain of 7.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.93% and the S&P 500's gain of 6.94%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's upcoming EPS is projected at $2.34, signifying a 1.27% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.49 billion, up 0.37% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $9.10 per share and revenue of $37.38 billion. These results would represent year-over-year changes of +7.95% and +4.38%, respectively.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 15.26. This represents a premium compared to its industry's average Forward P/E of 14.02.
It's also important to note that QCOM currently trades at a PEG ratio of 1.22. 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 1.26 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Qualcomm (QCOM - Free Report) reached $141.54, with a +1.97% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.19%.
Shares of the chipmaker witnessed a gain of 7.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.93% and the S&P 500's gain of 6.94%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's upcoming EPS is projected at $2.34, signifying a 1.27% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.49 billion, up 0.37% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $9.10 per share and revenue of $37.38 billion. These results would represent year-over-year changes of +7.95% and +4.38%, respectively.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 15.26. This represents a premium compared to its industry's average Forward P/E of 14.02.
It's also important to note that QCOM currently trades at a PEG ratio of 1.22. 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 1.26 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.