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

Qualcomm (QCOM) closed the most recent trading day at $162.55, moving -1.13% from the previous trading session. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Investors will be hoping for strength from QCOM as it approaches its next earnings release, which is expected to be February 3, 2021. In that report, analysts expect QCOM to post earnings of $2.10 per share. This would mark year-over-year growth of 112.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.30 billion, up 63.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.19 per share and revenue of $30.72 billion, which would represent changes of +71.6% and +30.53%, respectively, from the prior year.

Any recent changes to analyst estimates for QCOM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.04% higher. QCOM is currently a Zacks Rank #2 (Buy).

Looking at its valuation, QCOM is holding a Forward P/E ratio of 22.6. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 22.6.

Also, we should mention that QCOM has a PEG ratio of 1.15. 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 2.25 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 123, which puts it in the top 49% 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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