Qualcomm (QCOM) closed the most recent trading day at $124.62, moving -0.12% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the chipmaker had lost 11.34% in the past month. In that same time, the Computer and Technology sector lost 12.12%, while the S&P 500 lost 8.68%.
Qualcomm will be looking to display strength as it nears its next earnings release. On that day, Qualcomm is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 23.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.38 billion, up 21.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.47 per share and revenue of $44.17 billion. These totals would mark changes of +46.02% and +31.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Qualcomm. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Qualcomm currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 10.01. Its industry sports an average Forward P/E of 16.71, so we one might conclude that Qualcomm is trading at a discount comparatively.
Investors should also note that QCOM has a PEG ratio of 0.63 right now. 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 was holding an average PEG ratio of 1.84 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 84, putting it in the top 34% 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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