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Qualcomm (QCOM) Gains As Market Dips: What You Should Know

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Qualcomm (QCOM - Free Report) closed at $127.18 in the latest trading session, marking a +1.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the chipmaker had lost 10.49% in the past month. In that same time, the Computer and Technology sector gained 3.24%, while the S&P 500 lost 0.62%.

Investors will be hoping for strength from Qualcomm as it approaches its next earnings release, which is expected to be July 27, 2022. The company is expected to report EPS of $2.86, up 48.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.89 billion, up 35.14% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.54 per share and revenue of $44.75 billion. These totals would mark changes of +46.84% and +33.31%, respectively, from last year.

Any recent changes to analyst estimates for Qualcomm should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Qualcomm is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 9.98. For comparison, its industry has an average Forward P/E of 16.98, which means Qualcomm is trading at a discount to the group.

It is also worth noting that QCOM currently has a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.

To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.


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