Qualcomm (QCOM) Gains But Lags Market: What You Should Know
In the latest trading session, Qualcomm (QCOM) closed at $73.33, marking a +0.82% move from the previous day. This change lagged the S&P 500's 3.41% gain on the day. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.
Prior to today's trading, shares of the chipmaker had lost 7.81% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.94% and the S&P 500's loss of 10.46% in that time.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be April 29, 2020. On that day, QCOM is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 6.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.19 billion, up 4.21% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.02 per share and revenue of $21.53 billion. These totals would mark changes of +13.56% and -11.31%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for QCOM. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QCOM is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, QCOM currently has a Forward P/E ratio of 18.1. This represents a no noticeable deviation compared to its industry's average Forward P/E of 18.1.
Investors should also note that QCOM has a PEG ratio of 0.96 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
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