Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
Qualcomm (QCOM) closed at $69.93 in the latest trading session, marking a +0.49% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.
Heading into today, shares of the chipmaker had lost 19.33% over the past month, lagging the Computer and Technology sector's loss of 2.4% and the S&P 500's gain of 0.1% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release. In that report, analysts expect QCOM to post earnings of $0.77 per share. This would mark a year-over-year decline of 23.76%. Our most recent consensus estimate is calling for quarterly revenue of $5.11 billion, down 8.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.85 per share and revenue of $20.64 billion, which would represent changes of +4.34% and -9.2%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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 has moved 0.17% lower. QCOM currently has a Zacks Rank of #3 (Hold).
Digging into valuation, QCOM currently has a Forward P/E ratio of 18.09. For comparison, its industry has an average Forward P/E of 24.31, which means QCOM is trading at a discount to the group.
Also, we should mention that QCOM has a PEG ratio of 1.32. 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. QCOM's industry had an average PEG ratio of 2.89 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% 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.
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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