Qualcomm (QCOM) closed at $82.59 in the latest trading session, marking a +0.62% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.05%.
Prior to today's trading, shares of the chipmaker had lost 3.01% over the past month. This has lagged the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.32% 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 $0.85 per share. This would mark a year-over-year decline of 29.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.83 billion, down 0.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.12 per share and revenue of $21.88 billion. These totals would mark changes of +16.38% and -9.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-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.
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. Within the past 30 days, our consensus EPS projection has moved 5.72% higher. QCOM currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 19.9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 21.16.
Investors should also note that QCOM has a PEG ratio of 1.43 right now. 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 was holding an average PEG ratio of 3.59 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
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