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Qualcomm (QCOM) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $221.49, marking a -2.05% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Heading into today, shares of the chipmaker had lost 5.06% over the past month, lagging the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's earnings per share (EPS) are projected to be $2.21, reflecting a 20.22% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.7 billion, indicating a 6.46% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.77 per share and a revenue of $42.72 billion, representing changes of -10.47% and -3.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Qualcomm currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 21. This valuation marks a discount compared to its industry average Forward P/E of 53.67.
Investors should also note that QCOM has a PEG ratio of 20.79 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Qualcomm (QCOM) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Qualcomm (QCOM - Free Report) closed at $221.49, marking a -2.05% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Heading into today, shares of the chipmaker had lost 5.06% over the past month, lagging the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company's earnings per share (EPS) are projected to be $2.21, reflecting a 20.22% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.7 billion, indicating a 6.46% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.77 per share and a revenue of $42.72 billion, representing changes of -10.47% and -3.21%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Qualcomm currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 21. This valuation marks a discount compared to its industry average Forward P/E of 53.67.
Investors should also note that QCOM has a PEG ratio of 20.79 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.