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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $114.04, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the chipmaker had gained 2.26% over the past month, lagging the Computer and Technology sector's gain of 2.69% and outpacing the S&P 500's gain of 0.19% in that time.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. In that report, analysts expect Qualcomm to post earnings of $1.91 per share. This would mark a year-over-year decline of 38.98%. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, down 25.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.31 per share and revenue of $35.69 billion, which would represent changes of -33.68% and -19.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Qualcomm is currently a Zacks Rank #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 13.56. For comparison, its industry has an average Forward P/E of 13.56, which means Qualcomm is trading at a no noticeable deviation to the group.
Meanwhile, QCOM's PEG ratio is currently 0.85. 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 1.35 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 97, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $114.04, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the chipmaker had gained 2.26% over the past month, lagging the Computer and Technology sector's gain of 2.69% and outpacing the S&P 500's gain of 0.19% in that time.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. In that report, analysts expect Qualcomm to post earnings of $1.91 per share. This would mark a year-over-year decline of 38.98%. Meanwhile, our latest consensus estimate is calling for revenue of $8.51 billion, down 25.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.31 per share and revenue of $35.69 billion, which would represent changes of -33.68% and -19.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Qualcomm is currently a Zacks Rank #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 13.56. For comparison, its industry has an average Forward P/E of 13.56, which means Qualcomm is trading at a no noticeable deviation to the group.
Meanwhile, QCOM's PEG ratio is currently 0.85. 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 1.35 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 97, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.