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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know

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Qualcomm (QCOM - Free Report) closed the most recent trading day at $141.58, moving -0.66% from the previous trading session. This move lagged the S&P 500's daily loss of 0.46%.

Prior to today's trading, shares of the chipmaker had lost 2.84% over the past month. This has lagged the Computer and Technology sector's gain of 3.42% and the S&P 500's gain of 1.93% in that time.

Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. The company is expected to report EPS of $2.26, up 55.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.88 billion, up 6.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.25 per share and revenue of $33.03 billion. These totals would mark changes of +96.9% and +40.37%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. QCOM is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, QCOM currently has a Forward P/E ratio of 17.28. For comparison, its industry has an average Forward P/E of 22.36, which means QCOM is trading at a discount to the group.

Investors should also note that QCOM has a PEG ratio of 0.82 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 was holding an average PEG ratio of 3.27 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 77, putting it in the top 31% 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.

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


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