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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 $133.40, marking a -1.37% move from the previous day. This change lagged the S&P 500's 0.68% loss on the day.
Heading into today, shares of the chipmaker had gained 5.49% over the past month, lagging the Computer and Technology sector's gain of 9.54% and the S&P 500's gain of 6.62% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be April 28, 2021. The company is expected to report EPS of $1.67, up 89.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.63 billion, up 46.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.35 per share and revenue of $31.09 billion, which would represent changes of +75.42% and +32.1%, 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QCOM is currently a Zacks Rank #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 18.82. Its industry sports an average Forward P/E of 20.36, so we one might conclude that QCOM is trading at a discount comparatively.
Also, we should mention that QCOM has a PEG ratio of 0.88. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.85 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 110, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on 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 $133.40, marking a -1.37% move from the previous day. This change lagged the S&P 500's 0.68% loss on the day.
Heading into today, shares of the chipmaker had gained 5.49% over the past month, lagging the Computer and Technology sector's gain of 9.54% and the S&P 500's gain of 6.62% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be April 28, 2021. The company is expected to report EPS of $1.67, up 89.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.63 billion, up 46.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.35 per share and revenue of $31.09 billion, which would represent changes of +75.42% and +32.1%, 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QCOM is currently a Zacks Rank #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 18.82. Its industry sports an average Forward P/E of 20.36, so we one might conclude that QCOM is trading at a discount comparatively.
Also, we should mention that QCOM has a PEG ratio of 0.88. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.85 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 110, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.