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Qualcomm (QCOM) Gains But Lags Market: What You Should Know

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In the latest trading session, Qualcomm (QCOM) closed at $120.99, marking a +0.14% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.

Prior to today's trading, shares of the chipmaker had lost 8.06% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.55% and the S&P 500's loss of 10.02% in that time.

Wall Street will be looking for positivity from Qualcomm as it approaches its next earnings report date. This is expected to be July 27, 2022. In that report, analysts expect Qualcomm to post earnings of $2.86 per share. This would mark year-over-year growth of 48.96%. Our most recent consensus estimate is calling for quarterly revenue of $10.89 billion, up 35.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.54 per share and revenue of $44.75 billion. These totals would mark changes of +46.84% and +33.31%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Qualcomm is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Qualcomm currently has a Forward P/E ratio of 9.65. Its industry sports an average Forward P/E of 18.53, so we one might conclude that Qualcomm is trading at a discount comparatively.

It is also worth noting that QCOM currently has a PEG ratio of 0.59. 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 industry currently had an average PEG ratio of 1.64 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.


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