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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $54.90 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's 1.66% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.
Prior to today's trading, shares of the chipmaker had lost 14.23% over the past month. This has lagged the Computer and Technology sector's loss of 5.28% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be January 30, 2019. On that day, QCOM is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 8.16%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, down 19.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $20.93 billion, which would represent changes of +9.49% and -7.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 26.07% higher within the past month. QCOM currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note QCOM's current valuation metrics, including its Forward P/E ratio of 13.84. This valuation marks a discount compared to its industry's average Forward P/E of 20.78.
It is also worth noting that QCOM currently has a PEG ratio of 1.2. 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. QCOM's industry had an average PEG ratio of 2.18 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 6% 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.
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) Dips More Than Broader Markets: What You Should Know
Qualcomm (QCOM - Free Report) closed at $54.90 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's 1.66% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.
Prior to today's trading, shares of the chipmaker had lost 14.23% over the past month. This has lagged the Computer and Technology sector's loss of 5.28% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be January 30, 2019. On that day, QCOM is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 8.16%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, down 19.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $20.93 billion, which would represent changes of +9.49% and -7.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 26.07% higher within the past month. QCOM currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note QCOM's current valuation metrics, including its Forward P/E ratio of 13.84. This valuation marks a discount compared to its industry's average Forward P/E of 20.78.
It is also worth noting that QCOM currently has a PEG ratio of 1.2. 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. QCOM's industry had an average PEG ratio of 2.18 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 6% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.