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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
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The latest trading session saw Qualcomm (QCOM - Free Report) ending at $166.95, denoting a +0.6% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the chipmaker witnessed a loss of 2.08% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.11% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company's earnings per share (EPS) are projected to be $2.56, reflecting a 26.73% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.9 billion, reflecting a 14.67% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.03 per share and revenue of $38.6 billion. These totals would mark changes of +18.98% and +7.78%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Qualcomm holds a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 16.54. For comparison, its industry has an average Forward P/E of 16.54, which means Qualcomm is trading at no noticeable deviation to the group.
Meanwhile, QCOM's PEG ratio is currently 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Wireless Equipment industry was having an average PEG ratio of 2.52.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Qualcomm (QCOM - Free Report) ending at $166.95, denoting a +0.6% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.56%.
Shares of the chipmaker witnessed a loss of 2.08% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.11% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company's earnings per share (EPS) are projected to be $2.56, reflecting a 26.73% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.9 billion, reflecting a 14.67% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.03 per share and revenue of $38.6 billion. These totals would mark changes of +18.98% and +7.78%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Qualcomm holds a Zacks Rank of #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 16.54. For comparison, its industry has an average Forward P/E of 16.54, which means Qualcomm is trading at no noticeable deviation to the group.
Meanwhile, QCOM's PEG ratio is currently 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Wireless Equipment industry was having an average PEG ratio of 2.52.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.