Back to top

Image: Bigstock

Qualcomm (QCOM) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Qualcomm (QCOM - Free Report) closed at $131.93 in the latest trading session, marking a +0.24% move from the prior day. This change lagged the S&P 500's 0.48% gain on the day.

Coming into today, shares of the chipmaker had lost 1.69% in the past month. In that same time, the Computer and Technology sector lost 0.56%, while the S&P 500 gained 3.46%.

Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be November 3, 2021. In that report, analysts expect QCOM to post earnings of $2.26 per share. This would mark 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.

Any recent changes to analyst estimates for QCOM should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Within the past 30 days, our consensus EPS projection has moved 3.56% lower. QCOM is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, QCOM currently has a Forward P/E ratio of 14.32. For comparison, its industry has an average Forward P/E of 21.79, which means QCOM is trading at a discount to the group.

It is also worth noting that QCOM currently has a PEG ratio of 0.73. 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 4.07 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 158, putting it in the bottom 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Published in