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Qualcomm (QCOM) Stock Moves -0.83%: What You Should Know

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Qualcomm (QCOM - Free Report) closed at $72.55 in the latest trading session, marking a -0.83% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.

Prior to today's trading, shares of the chipmaker had gained 10.5% over the past month. This has outpaced the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from QCOM as it approaches its next earnings release. On that day, QCOM is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 24.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, down 8.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.82 per share and revenue of $20.43 billion, which would represent changes of +3.52% and -10.1%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.3% lower within the past month. QCOM is currently a Zacks Rank #3 (Hold).

Digging into valuation, QCOM currently has a Forward P/E ratio of 19.16. This valuation marks a discount compared to its industry's average Forward P/E of 25.02.

We can also see that QCOM currently has a PEG ratio of 1.4. 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. The Wireless Equipment was holding an average PEG ratio of 3.03 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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