Qualcomm (QCOM) closed at $58.09 in the latest trading session, marking a +0.48% move from the prior day. This move outpaced the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.25%.
Coming into today, shares of the chipmaker had gained 7.49% in the past month. In that same time, the Computer and Technology sector gained 3.92%, while the S&P 500 gained 2.36%.
QCOM will be looking to display strength as it nears its nex t earnings release. In tha t report , analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 11.25%. Meanwhile, our latest consensus estimate is calling for revenue of $4.79 billion, down 8.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.87 per share and revenue of $20.35 billion. These totals would mark changes of +4.88% and -10.46%, respectively, from last year.
Any recent changes to analyst estimates for QCOM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 currently has a Zacks Rank of #3 (Hold).
Investors should also note QCOM's current valuation metrics, including its Forward P/E ratio of 14.94. This valuation marks a discount compared to its industry's average Forward P/E of 24.67.
Also, we should mention that QCOM has a PEG ratio of 1.52. 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 2.32 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 95, putting it in the top 38% 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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