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Qualcomm (QCOM) Registers a Bigger Fall Than the Market: Important Facts to Note
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $194.26, moving -1.51% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The stock of chipmaker has risen by 20.47% in the past month, leading the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Qualcomm in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 27% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.16 billion, down 9.83% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.55 per share and revenue of $42.89 billion. These results would represent year-over-year changes of -12.3% and -2.82%, respectively.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Qualcomm is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Qualcomm has a Forward P/E ratio of 18.7 right now. This denotes a discount relative to the industry average Forward P/E of 36.98.
We can also see that QCOM currently has a PEG ratio of 3.02. 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. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.22.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Qualcomm (QCOM) Registers a Bigger Fall Than the Market: Important Facts to Note
Qualcomm (QCOM - Free Report) closed the most recent trading day at $194.26, moving -1.51% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The stock of chipmaker has risen by 20.47% in the past month, leading the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Qualcomm in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 27% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.16 billion, down 9.83% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.55 per share and revenue of $42.89 billion. These results would represent year-over-year changes of -12.3% and -2.82%, respectively.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Qualcomm is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Qualcomm has a Forward P/E ratio of 18.7 right now. This denotes a discount relative to the industry average Forward P/E of 36.98.
We can also see that QCOM currently has a PEG ratio of 3.02. 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. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.22.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.