In the latest trading session, Qualcomm (QCOM) closed at $128.42, marking a -0.47% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.63%. Elsewhere, the Dow lost 1.44%, while the tech-heavy Nasdaq lost 1.65%.
Coming into today, shares of the chipmaker had gained 12.32% in the past month. In that same time, the Computer and Technology sector gained 5.81%, while the S&P 500 gained 2.86%.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be November 4, 2020. In that report, analysts expect QCOM to post earnings of $1.14 per share. This would mark year-over-year growth of 46.15%. Meanwhile, our latest consensus estimate is calling for revenue of $5.94 billion, up 23.29% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for QCOM. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that QCOM has a Forward P/E ratio of 19.51 right now. For comparison, its industry has an average Forward P/E of 19.77, which means QCOM is trading at a discount to the group.
Meanwhile, QCOM’s PEG ratio is currently 0.91. 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 was holding an average PEG ratio of 1.82 at yesterday’s closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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