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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $121.21, marking a +1.81% move from the previous day. This move outpaced the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Coming into today, shares of the chipmaker had lost 1.96% in the past month. In that same time, the Computer and Technology sector gained 8.36%, while the S&P 500 gained 5.12%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. In that report, analysts expect Qualcomm to post earnings of $2.36 per share. This would mark a year-over-year decline of 26.93%. Meanwhile, our latest consensus estimate is calling for revenue of $9.62 billion, down 10.15% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.21 per share and revenue of $40.13 billion. These totals would mark changes of -18.52% and -9.21%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 11.66. Its industry sports an average Forward P/E of 17.76, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.75 right now. 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 1.81 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 190, which puts it in the bottom 25% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $121.21, marking a +1.81% move from the previous day. This move outpaced the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Coming into today, shares of the chipmaker had lost 1.96% in the past month. In that same time, the Computer and Technology sector gained 8.36%, while the S&P 500 gained 5.12%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. In that report, analysts expect Qualcomm to post earnings of $2.36 per share. This would mark a year-over-year decline of 26.93%. Meanwhile, our latest consensus estimate is calling for revenue of $9.62 billion, down 10.15% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.21 per share and revenue of $40.13 billion. These totals would mark changes of -18.52% and -9.21%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qualcomm is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 11.66. Its industry sports an average Forward P/E of 17.76, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.75 right now. 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 1.81 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 190, which puts it in the bottom 25% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.