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Qualcomm (QCOM) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest close session, Qualcomm (QCOM - Free Report) was down 6.96% at $191.12. The stock's change was less than the S&P 500's daily loss of 1.62%. Elsewhere, the Dow lost 1.87%, while the tech-heavy Nasdaq lost 1.98%.
Coming into today, shares of the chipmaker had lost 2.33% in the past month. In that same time, the Computer and Technology sector lost 0.74%, while the S&P 500 lost 0.03%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company is predicted to post an EPS of $2.26, indicating a 18.41% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.7 billion, reflecting a 6.46% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.8 per share and a revenue of $42.73 billion, representing changes of -10.22% and -3.2%, respectively, from the prior 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, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Qualcomm is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 19.02. This valuation marks a discount compared to its industry average Forward P/E of 48.66.
It is also worth noting that QCOM currently has a PEG ratio of 18.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Qualcomm (QCOM) Suffers a Larger Drop Than the General Market: Key Insights
In the latest close session, Qualcomm (QCOM - Free Report) was down 6.96% at $191.12. The stock's change was less than the S&P 500's daily loss of 1.62%. Elsewhere, the Dow lost 1.87%, while the tech-heavy Nasdaq lost 1.98%.
Coming into today, shares of the chipmaker had lost 2.33% in the past month. In that same time, the Computer and Technology sector lost 0.74%, while the S&P 500 lost 0.03%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company is predicted to post an EPS of $2.26, indicating a 18.41% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.7 billion, reflecting a 6.46% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.8 per share and a revenue of $42.73 billion, representing changes of -10.22% and -3.2%, respectively, from the prior 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, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Qualcomm is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 19.02. This valuation marks a discount compared to its industry average Forward P/E of 48.66.
It is also worth noting that QCOM currently has a PEG ratio of 18.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.