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Qualcomm (QCOM) Moves 11.1% Higher: Will This Strength Last?
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Qualcomm (QCOM - Free Report) shares soared 11.1% in the last trading session to close at $187.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% loss over the past four weeks.
With the accelerated rollout of 5G technology, QCOM is benefiting from investments toward building a licensing program in mobile. The company is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. This is likely to expand its total addressable market to approximately $900 billion by 2030.
Qualcomm is also witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are also fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification.
This chipmaker is expected to post quarterly earnings of $2.87 per share in its upcoming report, which represents a year-over-year change of +6.7%. Revenues are expected to be $10.77 billion, up 5.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Qualcomm, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on QCOM going forward to see if this recent jump can turn into more strength down the road.
Qualcomm is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Diodes (DIOD - Free Report) , finished the last trading session 0.7% lower at $56.63. DIOD has returned 7.4% over the past month.
Diodes' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of -11.6%. Diodes currently boasts a Zacks Rank of #3 (Hold).
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Qualcomm (QCOM) Moves 11.1% Higher: Will This Strength Last?
Qualcomm (QCOM - Free Report) shares soared 11.1% in the last trading session to close at $187.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% loss over the past four weeks.
With the accelerated rollout of 5G technology, QCOM is benefiting from investments toward building a licensing program in mobile. The company is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. This is likely to expand its total addressable market to approximately $900 billion by 2030.
Qualcomm is also witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are also fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification.
This chipmaker is expected to post quarterly earnings of $2.87 per share in its upcoming report, which represents a year-over-year change of +6.7%. Revenues are expected to be $10.77 billion, up 5.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Qualcomm, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on QCOM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Qualcomm is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Diodes (DIOD - Free Report) , finished the last trading session 0.7% lower at $56.63. DIOD has returned 7.4% over the past month.
Diodes' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of -11.6%. Diodes currently boasts a Zacks Rank of #3 (Hold).