Qualcomm (QCOM) closed the most recent trading day at $77.35, moving +0.12% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.24%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.58%.
Coming into today, shares of the chipmaker had gained 3.91% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 4.96%.
QCOM will be looking to display strength as it nears 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%. Our most recent consensus estimate is calling for quarterly revenue of $4.72 billion, down 18.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.46 per share and revenue of $19.31 billion. These totals would mark changes of -6.23% and -15.05%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for QCOM. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 22.34 right now. Its industry sports an average Forward P/E of 22.22, so we one might conclude that QCOM is trading at a premium comparatively.
Meanwhile, QCOM's PEG ratio is currently 1.75. 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 industry currently had an average PEG ratio of 2.88 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 107, which puts it in the top 42% 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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