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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $111.21 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 1.14% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release, which is expected to be November 2, 2022. The company is expected to report EPS of $3.15, up 23.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.38 billion, up 21.91% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. Qualcomm is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 8.8. For comparison, its industry has an average Forward P/E of 19.61, which means Qualcomm is trading at a discount to the group.
Also, we should mention that QCOM has a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
Qualcomm (QCOM - Free Report) closed at $111.21 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 1.14% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release, which is expected to be November 2, 2022. The company is expected to report EPS of $3.15, up 23.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.38 billion, up 21.91% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. Qualcomm is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 8.8. For comparison, its industry has an average Forward P/E of 19.61, which means Qualcomm is trading at a discount to the group.
Also, we should mention that QCOM has a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.