In the latest trading session, Qualcomm (QCOM - Free Report) closed at $79.08, marking a -1.03% move from the previous day. This change lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.3%.
Coming into today, shares of the chipmaker had gained 12.73% in the past month. In that same time, the Computer and Technology sector gained 3.47%, while the S&P 500 gained 2.99%.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. In that report, analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 21.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.72 billion, down 18.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $19.31 billion, which would represent changes of -6.23% and -15.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 1.62% lower within the past month. QCOM currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, QCOM is holding a Forward P/E ratio of 23.1. Its industry sports an average Forward P/E of 22.46, so we one might conclude that QCOM is trading at a premium comparatively.
Investors should also note that QCOM has a PEG ratio of 1.81 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. QCOM's industry had an average PEG ratio of 2.58 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.