Qualcomm (QCOM) closed the most recent trading day at $88.80, moving +0.45% from the previous trading session. This change outpaced the S&P 500's 0% on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the chipmaker had gained 4.25% over the past month. This has outpaced the Computer and Technology sector's gain of 4.19% and the S&P 500's gain of 3.37% in that time.
QCOM will be looking to display strength as it nears its next earnings release. In that report, analysts expect QCOM to post earnings of $0.85 per share. This would mark 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.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $4.12 per share and revenue of $21.88 billion. These results would represent year-over-year changes of +16.38% and -9.84%, respectively.
Investors should also note any recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QCOM is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, QCOM currently has a Forward P/E ratio of 21.43. This represents a no noticeable deviation compared to its industry's average Forward P/E of 21.43.
Meanwhile, QCOM's PEG ratio is currently 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. The Wireless Equipment industry currently had an average PEG ratio of 3.5 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% 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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