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Qualcomm (QCOM) Gains As Market Dips: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $109.94, moving +0.09% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 5.91%.
Prior to today's trading, shares of the chipmaker had lost 13.38% over the past month. This has lagged the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% 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%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also note any recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Qualcomm is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 10.78. This valuation marks a discount compared to its industry's average Forward P/E of 17.72.
Meanwhile, QCOM's PEG ratio is currently 0.69. 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 was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Qualcomm (QCOM) Gains As Market Dips: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $109.94, moving +0.09% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 5.91%.
Prior to today's trading, shares of the chipmaker had lost 13.38% over the past month. This has lagged the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% 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%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors should also note any recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Qualcomm is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 10.78. This valuation marks a discount compared to its industry's average Forward P/E of 17.72.
Meanwhile, QCOM's PEG ratio is currently 0.69. 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 was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.