In the latest trading session, Qualcomm (QCOM) closed at $73.99, marking a -1.96% move from the previous day. This change lagged the S&P 500's daily loss of 1.79%. Meanwhile, the Dow lost 1.86%, and the Nasdaq, a tech-heavy index, lost 1.56%.
Prior to today's trading, shares of the chipmaker had gained 0.47% over the past month. This has lagged the Computer and Technology sector's gain of 1.04% and the S&P 500's gain of 0.72% in that time.
Investors will be hoping for strength from QCOM as it approaches its next earnings release. In that report, analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 21.11%. Meanwhile, our latest consensus estimate is calling for revenue of $4.72 billion, down 18.7% from the prior-year quarter.
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. 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.
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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, QCOM is holding a Forward P/E ratio of 18.76. Its industry sports an average Forward P/E of 21.13, so we one might conclude that QCOM is trading at a discount comparatively.
We can also see that QCOM currently has a PEG ratio of 1.47. 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 2.7 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 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
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