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Why Qualcomm (QCOM) Outpaced the Stock Market Today
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Qualcomm (QCOM - Free Report) closed at $184.87 in the latest trading session, marking a +1.53% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.
Heading into today, shares of the chipmaker had gained 8.02% over the past month, outpacing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Qualcomm will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 27% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.16 billion, reflecting a 9.83% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.55 per share and revenue of $42.89 billion, which would represent changes of -12.3% and -2.82%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% downward. Currently, Qualcomm is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 18.17. For comparison, its industry has an average Forward P/E of 39.71, which means Qualcomm is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.35 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Why Qualcomm (QCOM) Outpaced the Stock Market Today
Qualcomm (QCOM - Free Report) closed at $184.87 in the latest trading session, marking a +1.53% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.
Heading into today, shares of the chipmaker had gained 8.02% over the past month, outpacing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Qualcomm will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 27% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.16 billion, reflecting a 9.83% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.55 per share and revenue of $42.89 billion, which would represent changes of -12.3% and -2.82%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% downward. Currently, Qualcomm is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 18.17. For comparison, its industry has an average Forward P/E of 39.71, which means Qualcomm is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 2.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.35 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.