Qualcomm (QCOM) closed at $88.49 in the latest trading session, marking a +0.58% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the chipmaker had gained 2.76% in the past month. In that same time, the Computer and Technology sector gained 2.67%, while the S&P 500 gained 2.44%.
QCOM will be looking to display strength as it nears its next earnings release. On that day, QCOM is projected to report earnings of $0.85 per share, which would represent a year-over-year decline of 29.17%. Our most recent consensus estimate is calling for quarterly revenue of $4.83 billion, down 0.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.12 per share and revenue of $21.88 billion, which would represent changes of +16.38% and -9.84%, respectively, from the prior year.
Investors should also note any 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 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 21.33 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 21.33.
It is also worth noting that QCOM currently has a PEG ratio of 1.53. 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. QCOM's industry had an average PEG ratio of 3.42 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 55, which puts it in the top 22% 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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