Qualcomm (QCOM - Free Report) closed the most recent trading day at $77.24, moving -1.57% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.19%.
Prior to today's trading, shares of the chipmaker had gained 4.31% over the past month. This has outpaced the Computer and Technology sector's loss of 0.13% and the S&P 500's gain of 0.32% in that time.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be November 6, 2019. In that report, analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 21.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.72 billion, down 18.7% from the year-ago period.
Any recent changes to analyst estimates for QCOM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. QCOM is currently a Zacks Rank #3 (Hold).
Digging into valuation, QCOM currently has a Forward P/E ratio of 19.7. This valuation marks a discount compared to its industry's average Forward P/E of 22.44.
Investors should also note that QCOM has a PEG ratio of 1.54 right now. 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 2.85 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 150, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.