In the latest trading session, Qualcomm (QCOM) closed at $73.71, marking a -0.87% move from the previous day. This move lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the chipmaker had gained 6.85% over the past month, outpacing the Computer and Technology sector's gain of 5.16% and the S&P 500's gain of 3.84% in that time.
QCOM will be looking to display strength as it nears its nex t earnings release, which is expected to be July 31, 2019. On that day, QCOM is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 24.75%. Our most recent consensus estimate is calling for quarterly revenue of $5.11 billion, down 8.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.82 per share and revenue of $20.43 billion, which would represent changes of +3.52% and -10.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for QCOM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.3% lower within the past month. QCOM is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 19.47 right now. Its industry sports an average Forward P/E of 24.7, so we one might conclude that QCOM is trading at a discount comparatively.
We can also see that QCOM currently has a PEG ratio of 1.54. 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 2.97 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 18, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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