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Qualcomm (QCOM) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $139.31, marking a -0.41% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
The the stock of chipmaker has risen by 2.35% in the past month, leading the Computer and Technology sector's gain of 1.51% and undershooting the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. On that day, Qualcomm is projected to report earnings of $2.37 per share, which would represent no growth from the year-ago period. Simultaneously, our latest consensus estimate expects the revenue to be $9.49 billion, showing a 0.36% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.11 per share and revenue of $37.38 billion, indicating changes of +8.07% and +4.37%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 has moved 0.07% higher. As of now, Qualcomm holds a Zacks Rank of #2 (Buy).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 15.35. This valuation marks a premium compared to its industry's average Forward P/E of 14.23.
Meanwhile, QCOM's PEG ratio is currently 1.23. 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. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.42.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Qualcomm (QCOM) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $139.31, marking a -0.41% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
The the stock of chipmaker has risen by 2.35% in the past month, leading the Computer and Technology sector's gain of 1.51% and undershooting the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. On that day, Qualcomm is projected to report earnings of $2.37 per share, which would represent no growth from the year-ago period. Simultaneously, our latest consensus estimate expects the revenue to be $9.49 billion, showing a 0.36% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.11 per share and revenue of $37.38 billion, indicating changes of +8.07% and +4.37%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 has moved 0.07% higher. As of now, Qualcomm holds a Zacks Rank of #2 (Buy).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 15.35. This valuation marks a premium compared to its industry's average Forward P/E of 14.23.
Meanwhile, QCOM's PEG ratio is currently 1.23. 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. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.42.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.