Qualcomm (QCOM) closed at $115.66 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's daily gain of 1.45%. Meanwhile, the Dow gained 2.12%, and the Nasdaq, a tech-heavy index, added 5.41%.
Prior to today's trading, shares of the chipmaker had gained 8.68% over the past month. This has lagged the Computer and Technology sector's gain of 10.26% and outpaced the S&P 500's gain of 1.53% in that time.
Investors will be hoping for strength from Qualcomm as it approaches its next earnings release. In that report, analysts expect Qualcomm to post earnings of $2.06 per share. This would mark a year-over-year decline of 30.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.51 billion, down 22.15% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $9.24 per share and revenue of $35.9 billion. These results would represent year-over-year changes of -26.26% and -18.77%, respectively.
Investors might also notice recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 5.14% lower. Qualcomm is currently a Zacks Rank #3 (Hold).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 12.54. This valuation marks a discount compared to its industry's average Forward P/E of 13.77.
We can also see that QCOM currently has a PEG ratio of 0.8. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.29 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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