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Qualcomm (QCOM) Dips More Than Broader Market: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $214.07, moving -3.05% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Heading into today, shares of the chipmaker had gained 8.43% over the past month, outpacing the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. The company is expected to report EPS of $2.26, down 18.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.7 billion, down 6.46% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.8 per share and revenue of $42.72 billion, indicating changes of -10.22% and -3.21%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Qualcomm is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 20.45. This signifies a discount in comparison to the average Forward P/E of 53.71 for its industry.
We can additionally observe that QCOM currently boasts a PEG ratio of 20.24. 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. QCOM's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Qualcomm (QCOM) Dips More Than Broader Market: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $214.07, moving -3.05% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Heading into today, shares of the chipmaker had gained 8.43% over the past month, outpacing the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Qualcomm in its upcoming earnings disclosure. The company is expected to report EPS of $2.26, down 18.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.7 billion, down 6.46% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.8 per share and revenue of $42.72 billion, indicating changes of -10.22% and -3.21%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Qualcomm. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Qualcomm is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 20.45. This signifies a discount in comparison to the average Forward P/E of 53.71 for its industry.
We can additionally observe that QCOM currently boasts a PEG ratio of 20.24. 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. QCOM's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.