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Qualcomm (QCOM) Falls More Steeply Than Broader Market: What Investors Need to Know

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Qualcomm (QCOM - Free Report) ended the recent trading session at $165.29, demonstrating a -2.35% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.1%.

Shares of the chipmaker have depreciated by 5.57% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.62%, and the S&P 500's gain of 2.26%.

The upcoming earnings release of Qualcomm will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.38, reflecting a 0.88% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $12.25 billion, up 4.99% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.15 per share and a revenue of $45.69 billion, indicating changes of +1% and +3.52%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Qualcomm holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Qualcomm is currently exchanging hands at a Forward P/E ratio of 13.93. This signifies a discount in comparison to the average Forward P/E of 35.72 for its industry.

We can also see that QCOM currently has a PEG ratio of 3.03. 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. The Electronics - Semiconductors industry had an average PEG ratio of 1.94 as trading concluded yesterday.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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