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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 $118.39, marking a +1.27% move from the previous day. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 10.96%.
Prior to today's trading, shares of the chipmaker had lost 5.33% over the past month. This has lagged the Computer and Technology sector's loss of 2% and the S&P 500's loss of 0.23% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. 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 $9.59 billion, down 10.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.21 per share and revenue of $39.97 billion, which would represent changes of -18.52% and -9.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 11.45. This valuation marks a discount compared to its industry's average Forward P/E of 17.28.
It is also worth noting that QCOM currently has a PEG ratio of 0.73. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.65 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 83, putting it in the top 33% 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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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $118.39, marking a +1.27% move from the previous day. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 10.96%.
Prior to today's trading, shares of the chipmaker had lost 5.33% over the past month. This has lagged the Computer and Technology sector's loss of 2% and the S&P 500's loss of 0.23% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. 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 $9.59 billion, down 10.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.21 per share and revenue of $39.97 billion, which would represent changes of -18.52% and -9.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Qualcomm is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 11.45. This valuation marks a discount compared to its industry's average Forward P/E of 17.28.
It is also worth noting that QCOM currently has a PEG ratio of 0.73. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.65 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 83, putting it in the top 33% 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.