Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
Qualcomm (QCOM) closed the latest trading day at $195.15, indicating a -1.1% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.3%.
Shares of the chipmaker witnessed a loss of 5.25% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.18% and the S&P 500's gain of 3.38%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company is predicted to post an EPS of $2.25, indicating a 20.32% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.19 billion, up 8.74% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.90 per share and a revenue of $38.16 billion, signifying shifts of +17.44% and +6.56%, respectively, from the last year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Qualcomm possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Qualcomm is at present trading with a Forward P/E ratio of 19.94. This represents a premium compared to its industry's average Forward P/E of 15.76.
We can additionally observe that QCOM currently boasts a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Wireless Equipment was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 225, placing it within the bottom 11% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
