We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualcomm (QCOM) Stock Falls Amid Market Uptick: What Investors Need to Know
Read MoreHide Full Article
In the latest close session, Qualcomm (QCOM - Free Report) was down 3.2% at $178.10. This move lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
The stock of chipmaker has fallen by 16.68% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Qualcomm will be of great interest to investors. It is anticipated that the company will report an EPS of $2.21, marking a 20.22% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.7 billion, showing a 6.46% drop compared to the year-ago quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.77 per share and revenue of $42.67 billion. These results would represent year-over-year changes of -10.47% and -3.32%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Qualcomm presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 17.09. For comparison, its industry has an average Forward P/E of 45.9, which means Qualcomm is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 4.05. 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 average PEG ratio for the Electronics - Semiconductors industry stood at 1.75 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
Image: Bigstock
Qualcomm (QCOM) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest close session, Qualcomm (QCOM - Free Report) was down 3.2% at $178.10. This move lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
The stock of chipmaker has fallen by 16.68% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
The upcoming earnings release of Qualcomm will be of great interest to investors. It is anticipated that the company will report an EPS of $2.21, marking a 20.22% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.7 billion, showing a 6.46% drop compared to the year-ago quarter.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.77 per share and revenue of $42.67 billion. These results would represent year-over-year changes of -10.47% and -3.32%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Qualcomm presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 17.09. For comparison, its industry has an average Forward P/E of 45.9, which means Qualcomm is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 4.05. 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 average PEG ratio for the Electronics - Semiconductors industry stood at 1.75 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.