Qualcomm (QCOM) Gains But Lags Market: What You Should Know
Qualcomm (QCOM) closed at $126.69 in the latest trading session, marking a +1.46% move from the prior day. This change lagged the S&P 500's 1.64% gain on the day. At the same time, the Dow added 0.88%, and the tech-heavy Nasdaq gained 2.56%.
Heading into today, shares of the chipmaker had gained 11.05% over the past month, outpacing the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 2.44% 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 November 4, 2020. In that report, analysts expect QCOM to post earnings of $1.13 per share. This would mark year-over-year growth of 44.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.94 billion, up 23.29% from the year-ago period.
It is also important to note the recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. QCOM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, QCOM currently has a Forward P/E ratio of 19.23. For comparison, its industry has an average Forward P/E of 19.89, which means QCOM is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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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