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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
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Qualcomm (QCOM - Free Report) closed at $115.22 in the latest trading session, marking a -1.63% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the chipmaker had gained 1.69% over the past month, lagging the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 4.16% in that time.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, down 22.15% from the prior-year quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $8.25 per share and revenue of $35.9 billion. These results would represent year-over-year changes of -34.16% and -18.77%, respectively.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 14.19. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.19.
It is also worth noting that QCOM currently has a PEG ratio of 0.91. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.81 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 54, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know
Qualcomm (QCOM - Free Report) closed at $115.22 in the latest trading session, marking a -1.63% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the chipmaker had gained 1.69% over the past month, lagging the Computer and Technology sector's gain of 2.73% and the S&P 500's gain of 4.16% in that time.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, down 22.15% from the prior-year quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $8.25 per share and revenue of $35.9 billion. These results would represent year-over-year changes of -34.16% and -18.77%, respectively.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 14.19. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.19.
It is also worth noting that QCOM currently has a PEG ratio of 0.91. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.81 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 54, which puts it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.