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Qualcomm (QCOM) Rises As Market Takes a Dip: Key Facts
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $176.86, moving +1.39% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.15%.
Coming into today, shares of the chipmaker had lost 3.18% in the past month. In that same time, the Computer and Technology sector gained 3.58%, while the S&P 500 gained 2.05%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 27% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.16 billion, down 9.83% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.55 per share and revenue of $42.89 billion. These totals would mark changes of -12.3% and -2.82%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Qualcomm presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 17.41. This denotes a discount relative to the industry average Forward P/E of 37.57.
One should further note that QCOM currently holds a PEG ratio of 2.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.23.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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) Rises As Market Takes a Dip: Key Facts
Qualcomm (QCOM - Free Report) closed the most recent trading day at $176.86, moving +1.39% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.15%.
Coming into today, shares of the chipmaker had lost 3.18% in the past month. In that same time, the Computer and Technology sector gained 3.58%, while the S&P 500 gained 2.05%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.19, reflecting a 27% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.16 billion, down 9.83% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.55 per share and revenue of $42.89 billion. These totals would mark changes of -12.3% and -2.82%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Qualcomm presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 17.41. This denotes a discount relative to the industry average Forward P/E of 37.57.
One should further note that QCOM currently holds a PEG ratio of 2.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.23.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.