In the latest trading session, Qualcomm (QCOM) closed at $78.23, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the chipmaker had lost 1.11% in the past month. In that same time, the Computer and Technology sector gained 0.91%, while the S&P 500 lost 0.25%.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. 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.
Any recent changes to analyst estimates for QCOM should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. QCOM is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 19.35 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.19.
It is also worth noting that QCOM currently has a PEG ratio of 1.51. 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. QCOM's industry had an average PEG ratio of 2.76 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 112, which puts it in the top 44% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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