We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualcomm (QCOM) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Qualcomm (QCOM - Free Report) closed at $119.04 in the latest trading session, marking a +0.83% move from the prior day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the chipmaker had gained 1.93% in the past month. In that same time, the Computer and Technology sector gained 3.32%, while the S&P 500 gained 4.67%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. On that day, Qualcomm is projected to report earnings of $1.81 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.25 per share and revenue of $35.9 billion. These totals would mark changes of -34.16% and -18.77%, respectively, from last year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.14% lower. Qualcomm currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 14.3. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.3.
Meanwhile, QCOM's PEG ratio is currently 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 1.8 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 112, putting it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Qualcomm (QCOM) Gains But Lags Market: What You Should Know
Qualcomm (QCOM - Free Report) closed at $119.04 in the latest trading session, marking a +0.83% move from the prior day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the chipmaker had gained 1.93% in the past month. In that same time, the Computer and Technology sector gained 3.32%, while the S&P 500 gained 4.67%.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. On that day, Qualcomm is projected to report earnings of $1.81 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.25 per share and revenue of $35.9 billion. These totals would mark changes of -34.16% and -18.77%, respectively, from last year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.14% lower. Qualcomm currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Qualcomm's current valuation metrics, including its Forward P/E ratio of 14.3. This represents a no noticeable deviation compared to its industry's average Forward P/E of 14.3.
Meanwhile, QCOM's PEG ratio is currently 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 1.8 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 112, putting it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.