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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 $116.38, moving +0.55% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the chipmaker had lost 4.5% over the past month. This has lagged the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.38 billion, up 21.91% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.82% lower within the past month. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 9.14. Its industry sports an average Forward P/E of 19.78, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.59 right now. 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 2.1 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $116.38, moving +0.55% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.19%. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the chipmaker had lost 4.5% over the past month. This has lagged the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.38 billion, up 21.91% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.82% lower within the past month. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 9.14. Its industry sports an average Forward P/E of 19.78, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.59 right now. 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 2.1 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.