Qualcomm (QCOM) closed at $164.93 in the latest trading session, marking a -0.94% move from the prior day. This change was narrower than the S&P 500's 1.89% loss on the day. Meanwhile, the Dow lost 1.3%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Prior to today's trading, shares of the chipmaker had lost 8.89% over the past month. This has lagged the Computer and Technology sector's loss of 6.14% and the S&P 500's loss of 1.79% in that time.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release, which is expected to be February 2, 2022. On that day, Qualcomm is projected to report earnings of $3 per share, which would represent year-over-year growth of 38.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.42 billion, up 26.52% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $10.54 per share and revenue of $39.53 billion. These results would represent year-over-year changes of +23.42% and +17.76%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 has moved 0.81% higher. Qualcomm is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Qualcomm has a Forward P/E ratio of 15.8 right now. For comparison, its industry has an average Forward P/E of 24.31, which means Qualcomm is trading at a discount to the group.
We can also see that QCOM currently has a PEG ratio of 1.03. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.91 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 171, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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