Qualcomm (QCOM) closed the latest trading day at $160.39, indicating a -1.81% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the chipmaker had lost 5.58% over the past month. This has lagged the Computer and Technology sector's gain of 7.09% and the S&P 500's gain of 6.66% in that time.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. It is anticipated that the company will report an EPS of $2.92, marking a 6.18% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $10.89 billion, indicating a 9.61% upward movement from the same quarter last year.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.14 per share and revenue of $42.19 billion. These results would represent year-over-year changes of +9% and +8.29%, respectively.
Investors should also note any recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.04% increase. Qualcomm is currently a Zacks Rank #2 (Buy).
Looking at valuation, Qualcomm is presently trading at a Forward P/E ratio of 14.66. For comparison, its industry has an average Forward P/E of 16.67, which means Qualcomm is trading at a discount to the group.
It is also worth noting that QCOM currently has a PEG ratio of 2.23. 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 3.61 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 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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