Back to top

Image: Bigstock

Qualcomm (QCOM) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

In the latest trading session, Qualcomm (QCOM - Free Report) closed at $136.17, marking a -1.04% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 0.56%.

Prior to today's trading, shares of the chipmaker had gained 5.88% over the past month. This has outpaced the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56% in that time.

The upcoming earnings release of Qualcomm will be of great interest to investors. The company is forecasted to report an EPS of $2.37, showcasing no movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $9.49 billion, up 0.36% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.11 per share and revenue of $37.38 billion. These totals would mark changes of +8.07% and +4.37%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Qualcomm currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 15.1. This signifies a premium in comparison to the average Forward P/E of 13.02 for its industry.

It is also worth noting that QCOM currently has a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Wireless Equipment industry was having an average PEG ratio of 1.26.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 35% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Published in