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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $112.61, marking a -1.68% move from the previous day. This move lagged the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the chipmaker had lost 7.53% over the past month. This has lagged the Computer and Technology sector's loss of 4.11% and the S&P 500's loss of 2.66% in that time.
Qualcomm will be looking to display strength as it nears its next earnings release. On that day, Qualcomm is projected to report earnings of $2.36 per share, which would represent a year-over-year decline of 26.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.6 billion, down 10.32% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.19 per share and revenue of $40.07 billion. These results would represent year-over-year changes of -18.68% and -9.34%, respectively.
It is also important to note the recent changes to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Qualcomm currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 11.24. Its industry sports an average Forward P/E of 17.49, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.72 right now. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.79 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $112.61, marking a -1.68% move from the previous day. This move lagged the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the chipmaker had lost 7.53% over the past month. This has lagged the Computer and Technology sector's loss of 4.11% and the S&P 500's loss of 2.66% in that time.
Qualcomm will be looking to display strength as it nears its next earnings release. On that day, Qualcomm is projected to report earnings of $2.36 per share, which would represent a year-over-year decline of 26.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.6 billion, down 10.32% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.19 per share and revenue of $40.07 billion. These results would represent year-over-year changes of -18.68% and -9.34%, respectively.
It is also important to note the recent changes to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Qualcomm currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 11.24. Its industry sports an average Forward P/E of 17.49, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.72 right now. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.79 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% 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.