Qualcomm (QCOM) closed at $65.15 in the latest trading session, marking a -1.44% move from the prior day. This change traded in line with S&P 500. At the same time, the Dow lost 1.27%, and the tech-heavy Nasdaq lost 2.06%.
Prior to today's trading, shares of the chipmaker had lost 10.75% over the past month. This has lagged the Computer and Technology sector's loss of 3.96% and the S&P 500's loss of 2.61% in that time.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be November 7, 2018. The company is expected to report EPS of $0.82, down 10.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.53 billion, down 6.27% from the year-ago period.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. QCOM currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 18.67 right now. Its industry sports an average Forward P/E of 21.51, so we one might conclude that QCOM is trading at a discount comparatively.
Meanwhile, QCOM's PEG ratio is currently 1.72. 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 2.37 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 13% 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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