In the latest trading session, Qualcomm (QCOM - Free Report) closed at $92.14, marking a -0.84% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.
Coming into today, shares of the chipmaker had gained 1.7% in the past month. In that same time, the Computer and Technology sector gained 5.89%, while the S&P 500 lost 0.3%.
Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be July 29, 2020. In that report, analysts expect QCOM to post earnings of $0.71 per share. This would mark a year-over-year decline of 11.25%. Meanwhile, our latest consensus estimate is calling for revenue of $4.79 billion, down 50.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.65 per share and revenue of $20.78 billion, which would represent changes of +3.11% and -14.39%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QCOM is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, QCOM is currently trading at a Forward P/E ratio of 25.49. This represents a no noticeable deviation compared to its industry's average Forward P/E of 25.49.
We can also see that QCOM currently has a PEG ratio of 1.45. 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. QCOM's industry had an average PEG ratio of 1.96 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 81, which puts it in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.