In the latest trading session, Qualcomm (QCOM - Free Report) closed at $64.29, marking no change from the previous day. This move lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1.15%, and the Nasdaq, a tech-heavy index, added 2.29%.
Heading into today, shares of the chipmaker had lost 13.83% over the past month, lagging the Computer and Technology sector's loss of 8.09% and the S&P 500's loss of 5.36% in that time.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be November 7, 2018. In that report, analysts expect QCOM to post earnings of $0.82 per share. This would mark a year-over-year decline of 10.87%. Meanwhile, our latest consensus estimate is calling for revenue of $5.53 billion, down 6.27% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. QCOM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 18.16. This represents a discount compared to its industry's average Forward P/E of 19.8.
We can also see that QCOM currently has a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. QCOM's industry had an average PEG ratio of 2.24 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 84, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.