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Qualcomm (QCOM) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Qualcomm (QCOM - Free Report) reached $150.40, with a -1.73% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.1%.

Heading into today, shares of the chipmaker had lost 0.79% over the past month, lagging the Computer and Technology sector's gain of 3.04% and the S&P 500's loss of 0.29% in that time.

The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company is forecasted to report an EPS of $2.92, showcasing a 6.18% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $10.89 billion, reflecting a 9.61% rise from the equivalent quarter last year.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.14 per share and revenue of $42.19 billion. These results would represent year-over-year changes of +9% and +8.29%, respectively.

Investors should also note any recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. Qualcomm is currently a Zacks Rank #2 (Buy).

Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 13.73. This indicates a discount in contrast to its industry's Forward P/E of 16.09.

Investors should also note that QCOM has a PEG ratio of 2.09 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. QCOM's industry had an average PEG ratio of 3.35 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 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.

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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