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Qualcomm (QCOM) Declines More Than Market: Some Information for Investors

Qualcomm (QCOM) closed the latest trading day at $212.53, indicating a -1.36% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the chipmaker had gained 6.8% over the past month. This has outpaced the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Qualcomm in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.24, showcasing a 19.79% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $9.19 billion, indicating an 8.74% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.87 per share and a revenue of $38.16 billion, indicating changes of +17.08% and +6.56%, respectively, from the former year.

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Any recent changes to analyst estimates for Qualcomm should also be noted by investors. 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.26% rise in the Zacks Consensus EPS estimate. At present, Qualcomm boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Qualcomm is currently being traded at a Forward P/E ratio of 21.84. Its industry sports an average Forward P/E of 15.55, so one might conclude that Qualcomm is trading at a premium comparatively.

It is also worth noting that QCOM currently has a PEG ratio of 2.08. 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 1.62 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 220, placing it within the bottom 13% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

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