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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $117.76, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.98%.
Heading into today, shares of the chipmaker had lost 4.44% over the past month, lagging the Computer and Technology sector's gain of 2.75% and the S&P 500's gain of 4.59% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $2.15, down 33.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, down 18.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.34 per share and revenue of $37.82 billion, which would represent changes of -25.46% and -14.43%, 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. 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 12.7. Its industry sports an average Forward P/E of 12.7, so we one might conclude that Qualcomm is trading at a no noticeable deviation comparatively.
Also, we should mention that QCOM has a PEG ratio of 0.81. 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 2.45 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $117.76, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.98%.
Heading into today, shares of the chipmaker had lost 4.44% over the past month, lagging the Computer and Technology sector's gain of 2.75% and the S&P 500's gain of 4.59% in that time.
Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $2.15, down 33.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, down 18.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.34 per share and revenue of $37.82 billion, which would represent changes of -25.46% and -14.43%, 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. 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 12.7. Its industry sports an average Forward P/E of 12.7, so we one might conclude that Qualcomm is trading at a no noticeable deviation comparatively.
Also, we should mention that QCOM has a PEG ratio of 0.81. 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 2.45 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.