In the latest trading session, Qualcomm (QCOM) closed at $129.28, marking a -0.48% move from the previous day. This change lagged the S&P 500’s 0.16% gain on the day.
Heading into today, shares of the chipmaker had lost 11.45% over the past month, lagging the Computer and Technology sector’s loss of 4.96% and the S&P 500’s loss of 3.32% in that time.
QCOM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.26, up 55.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.88 billion, up 6.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.25 per share and revenue of $33.03 billion. These totals would mark changes of +96.9% and +40.37%, respectively, from last year.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. QCOM is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 15.75 right now. This represents a discount compared to its industry’s average Forward P/E of 21.2.
It is also worth noting that QCOM currently has a PEG ratio of 0.81. 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 industry currently had an average PEG ratio of 3.93 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 63, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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