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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $127.53, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 1.05%.
Coming into today, shares of the chipmaker had lost 12.41% in the past month. In that same time, the Computer and Technology sector lost 9.29%, while the S&P 500 lost 5.07%.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be November 3, 2021. On that day, QCOM is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 55.86%. Our most recent consensus estimate is calling for quarterly revenue of $8.88 billion, up 6.36% from the year-ago period.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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).
Digging into valuation, QCOM currently has a Forward P/E ratio of 13.89. This represents a discount compared to its industry's average Forward P/E of 20.94.
Investors should also note that QCOM has a PEG ratio of 0.71 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 3.96 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $127.53, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 1.05%.
Coming into today, shares of the chipmaker had lost 12.41% in the past month. In that same time, the Computer and Technology sector lost 9.29%, while the S&P 500 lost 5.07%.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be November 3, 2021. On that day, QCOM is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 55.86%. Our most recent consensus estimate is calling for quarterly revenue of $8.88 billion, up 6.36% from the year-ago period.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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).
Digging into valuation, QCOM currently has a Forward P/E ratio of 13.89. This represents a discount compared to its industry's average Forward P/E of 20.94.
Investors should also note that QCOM has a PEG ratio of 0.71 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 3.96 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.