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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $89.67, moving -0.98% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the chipmaker had gained 2.54% over the past month, lagging the Computer and Technology sector's gain of 6.59% and the S&P 500's gain of 3.72% in that time.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be February 5, 2020. The company is expected to report EPS of $0.85, down 29.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.83 billion, down 0.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $21.88 billion. These totals would mark changes of +16.38% and -9.84%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. QCOM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 21.96. This valuation marks a discount compared to its industry's average Forward P/E of 26.88.
It is also worth noting that QCOM currently has a PEG ratio of 1.57. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 3.19 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $89.67, moving -0.98% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the chipmaker had gained 2.54% over the past month, lagging the Computer and Technology sector's gain of 6.59% and the S&P 500's gain of 3.72% in that time.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be February 5, 2020. The company is expected to report EPS of $0.85, down 29.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.83 billion, down 0.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $21.88 billion. These totals would mark changes of +16.38% and -9.84%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. QCOM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 21.96. This valuation marks a discount compared to its industry's average Forward P/E of 26.88.
It is also worth noting that QCOM currently has a PEG ratio of 1.57. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 3.19 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.