Qualcomm (QCOM - Free Report) closed the most recent trading day at $57.11, moving -1.07% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.42%.
Coming into today, shares of the chipmaker had lost 8.67% in the past month. In that same time, the Computer and Technology sector lost 1.79%, while the S&P 500 lost 1.1%.
QCOM will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect QCOM to post earnings of $1.06 per share. This would mark year-over-year growth of 8.16%. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, down 19.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $20.81 billion. These totals would mark changes of +8.13% and -8.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for QCOM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 26.07% higher. QCOM is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, QCOM currently has a Forward P/E ratio of 14.48. For comparison, its industry has an average Forward P/E of 20.77, which means QCOM is trading at a discount to the group.
Meanwhile, QCOM's PEG ratio is currently 1.26. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.