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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 $141.69, marking a -1.86% move from the previous day. This move lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the chipmaker had gained 19.32% over the past month, outpacing the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.

Qualcomm will be looking to display strength as it nears 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, the Zacks Consensus Estimate for revenue is projecting net sales of $10.88 billion, up 35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.48 per share and revenue of $44.59 billion, which would represent changes of +46.14% and +32.83%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.58% lower. Qualcomm currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Qualcomm currently has a Forward P/E ratio of 11.57. This valuation marks a discount compared to its industry's average Forward P/E of 17.95.

We can also see that QCOM currently has a PEG ratio of 0.69. 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. QCOM's industry had an average PEG ratio of 1.42 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 133, which puts it in the bottom 48% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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