Qualcomm (QCOM) closed the most recent trading day at $89.75, moving -1.77% from the previous trading session. This move lagged the S&P 500's daily loss of 0.78%. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.29%.
Investors will be hoping for strength from QCOM as it approaches its next earnings release. On that day, QCOM is projected to report earnings of $0.72 per share, which would represent a year-over-year decline of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $4.79 billion, down 50.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.64 per share and revenue of $20.77 billion, which would represent changes of +2.82% and -14.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 25.09. For comparison, its industry has an average Forward P/E of 21.89, which means QCOM is trading at a premium to the group.
Also, we should mention that QCOM has a PEG ratio of 1.36. 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. QCOM's industry had an average PEG ratio of 2.33 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 88, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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