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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know

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Qualcomm (QCOM - Free Report) closed at $54.35 in the latest trading session, marking a +1.53% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 2.02%.

Heading into today, shares of the chipmaker had gained 5.9% over the past month, outpacing the Computer and Technology sector's gain of 2.44% and the S&P 500's gain of 1.5% in that time.

Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. On that day, QCOM is projected to report earnings of $0.71 per share, which would represent a year-over-year decline of 11.25%. Meanwhile, our latest consensus estimate is calling for revenue of $4.81 billion, down 8.6% from the prior-year quarter.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $20.29 billion. These results would represent year-over-year changes of +4.61% and -10.74%, respectively.

Investors should also note any recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.46% lower within the past month. QCOM is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 13.86 right now. This represents a discount compared to its industry's average Forward P/E of 24.39.

Investors should also note that QCOM has a PEG ratio of 1.41 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 2.15 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.




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