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Qualcomm (QCOM) Gains But Lags Market: What You Should Know
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Qualcomm (QCOM - Free Report) closed the most recent trading day at $89.01, moving +1.12% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 2.32%, and the Nasdaq, a tech-heavy index, added 1.2%.
Heading into today, shares of the chipmaker had gained 12.69% over the past month, outpacing the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 0.74% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be July 29, 2020. In that report, analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 11.25%. Our most recent consensus estimate is calling for quarterly revenue of $4.79 billion, down 50.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.65 per share and revenue of $20.78 billion. These totals would mark changes of +3.11% and -14.39%, respectively, from last year.
Any recent changes to analyst estimates for QCOM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is currently a Zacks Rank #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 24.15. Its industry sports an average Forward P/E of 23.11, so we one might conclude that QCOM is trading at a premium comparatively.
Meanwhile, QCOM's PEG ratio is currently 1.37. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.96 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 50, which puts it in the top 20% 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) Gains But Lags Market: What You Should Know
Qualcomm (QCOM - Free Report) closed the most recent trading day at $89.01, moving +1.12% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 2.32%, and the Nasdaq, a tech-heavy index, added 1.2%.
Heading into today, shares of the chipmaker had gained 12.69% over the past month, outpacing the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 0.74% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be July 29, 2020. In that report, analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 11.25%. Our most recent consensus estimate is calling for quarterly revenue of $4.79 billion, down 50.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.65 per share and revenue of $20.78 billion. These totals would mark changes of +3.11% and -14.39%, respectively, from last year.
Any recent changes to analyst estimates for QCOM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is currently a Zacks Rank #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 24.15. Its industry sports an average Forward P/E of 23.11, so we one might conclude that QCOM is trading at a premium comparatively.
Meanwhile, QCOM's PEG ratio is currently 1.37. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.96 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 50, which puts it in the top 20% 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.