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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $123.40 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Heading into today, shares of the chipmaker had gained 19.89% over the past month, outpacing the Computer and Technology sector's gain of 11.52% and the S&P 500's gain of 6.1% 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 $1.81 per share. This would mark a year-over-year decline of 38.85%. Our most recent consensus estimate is calling for quarterly revenue of $8.51 billion, down 22.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.25 per share and revenue of $35.9 billion, which would represent changes of -34.16% and -18.77%, respectively, from the prior year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Qualcomm is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 15.07. For comparison, its industry has an average Forward P/E of 15.07, which means Qualcomm is trading at a no noticeable deviation to the group.
It is also worth noting that QCOM currently has a PEG ratio of 0.97. 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. The Wireless Equipment was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
Qualcomm (QCOM - Free Report) closed at $123.40 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Heading into today, shares of the chipmaker had gained 19.89% over the past month, outpacing the Computer and Technology sector's gain of 11.52% and the S&P 500's gain of 6.1% 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 $1.81 per share. This would mark a year-over-year decline of 38.85%. Our most recent consensus estimate is calling for quarterly revenue of $8.51 billion, down 22.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.25 per share and revenue of $35.9 billion, which would represent changes of -34.16% and -18.77%, respectively, from the prior year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Qualcomm is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 15.07. For comparison, its industry has an average Forward P/E of 15.07, which means Qualcomm is trading at a no noticeable deviation to the group.
It is also worth noting that QCOM currently has a PEG ratio of 0.97. 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. The Wireless Equipment was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.