Qualcomm (QCOM) closed the most recent trading day at $134.95, moving -0.46% from the previous trading session. This change was narrower than the S&P 500’s 0.54% loss on the day.
Coming into today, shares of the chipmaker had gained 5.17% in the past month. In that same time, the Computer and Technology sector gained 6.51%, while the S&P 500 gained 1.91%.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. On that day, QCOM is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 94.19%. Meanwhile, our latest consensus estimate is calling for revenue of $7.62 billion, up 55.82% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.79 per share and revenue of $32.18 billion. These totals would mark changes of +85.92% and +36.77%, respectively, from last year.
Any recent changes to analyst estimates for QCOM should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. QCOM is currently a Zacks Rank #3 (Hold).
Investors should also note QCOM’s current valuation metrics, including its Forward P/E ratio of 17.4. This represents a discount compared to its industry’s average Forward P/E of 20.98.
It is also worth noting that QCOM currently has a PEG ratio of 0.81. 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 2.26 at yesterday’s closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% 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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