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Why Qualcomm (QCOM) Dipped More Than Broader Market Today
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Qualcomm (QCOM - Free Report) ended the recent trading session at $166.94, demonstrating a -1.16% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.96%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 1.18%.
Shares of the chipmaker have appreciated by 6.77% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.35% and outperforming the S&P 500's gain of 4.3%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.56, marking a 26.73% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.9 billion, indicating a 14.67% increase compared to the same quarter of the previous year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.57% lower. Currently, Qualcomm is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 15.45. This signifies no noticeable deviation in comparison to the average Forward P/E of 15.45 for its industry.
We can also see that QCOM currently has a PEG ratio of 1.35. 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 2.48 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 39% of over 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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Why Qualcomm (QCOM) Dipped More Than Broader Market Today
Qualcomm (QCOM - Free Report) ended the recent trading session at $166.94, demonstrating a -1.16% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.96%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 1.18%.
Shares of the chipmaker have appreciated by 6.77% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.35% and outperforming the S&P 500's gain of 4.3%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.56, marking a 26.73% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.9 billion, indicating a 14.67% increase compared to the same quarter of the previous year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.57% lower. Currently, Qualcomm is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 15.45. This signifies no noticeable deviation in comparison to the average Forward P/E of 15.45 for its industry.
We can also see that QCOM currently has a PEG ratio of 1.35. 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 2.48 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 39% of over 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.