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Qualcomm (QCOM) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 mins read

In the latest trading session, Qualcomm (QCOM) closed at $117.38, marking a -0.92% move from the previous day. This change lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq lost 0.29%.

Heading into today, shares of the chipmaker had lost 0.53% over the past month, outpacing the Computer and Technology sector's loss of 5.56% and the S&P 500's loss of 4.3% in that time.

Investors will be hoping for strength from QCOM as it approaches its next earnings release. The company is expected to report EPS of $1.17, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.94 billion, up 23.29% from the prior-year quarter.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $3.91 per share and revenue of $21.09 billion. These results would represent year-over-year changes of +10.45% and -13.11%, respectively.

It is also important to note the recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, QCOM is holding a Forward P/E ratio of 30.32. For comparison, its industry has an average Forward P/E of 20.02, which means QCOM is trading at a premium to the group.

We can also see that QCOM currently has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 1.78 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 203, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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Zacks Investment Research