Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0774
    -0.0020 (-0.18%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2621
    -0.0001 (-0.01%)
     
  • USD/JPY

    151.3320
    -0.0400 (-0.03%)
     
  • Bitcoin USD

    69,905.80
    -475.55 (-0.68%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Qualcomm (QCOM) Outpaces Stock Market Gains: What You Should Know

Whitford acquisition allows PPG Industries (PPG) to drive shareholder and customer value by enhancing its product offerings.

In the latest trading session, Qualcomm (QCOM) closed at $57.72, marking a +0.65% move from the previous day. This move outpaced the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.95%.

Prior to today's trading, shares of the chipmaker had gained 5.89% over the past month. This has outpaced the Computer and Technology sector's loss of 3.66% and the S&P 500's loss of 4.97% 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 January 30, 2019. On that day, QCOM is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 7.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, down 19.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.89 per share and revenue of $20.55 billion. These totals would mark changes of +5.42% and -9.58%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #1 (Strong Buy).

Looking at its valuation, QCOM is holding a Forward P/E ratio of 14.73. This represents a discount compared to its industry's average Forward P/E of 23.36.

It is also worth noting that QCOM currently has a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 2.21 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 13, which puts it in the top 5% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement