In the latest trading session, Qualcomm (QCOM) closed at $125.91, marking a -0.23% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.64%.
Coming into today, shares of the chipmaker had gained 6.52% in the past month. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 3.25%.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be November 4, 2020. The company is expected to report EPS of $1.14, up 46.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.94 billion, up 23.29% from the year-ago period.
Investors might also notice recent changes to analyst estimates for QCOM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QCOM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, QCOM currently has a Forward P/E ratio of 19.08. For comparison, its industry has an average Forward P/E of 19.94, which means QCOM is trading at a discount to the group.
Also, we should mention that QCOM has a PEG ratio of 0.89. 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 was holding an average PEG ratio of 1.77 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 119, putting it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
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