Qualcomm (QCOM) closed the most recent trading day at $86.39, moving +1.35% from the previous trading session. This change outpaced the S&P 500's 0.83% gain on the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 1.43%.
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 $0.72 per share. This would mark a year-over-year decline of 10%. Our most recent consensus estimate is calling for quarterly revenue of $4.79 billion, down 50.26% from the year-ago period.
QCOM's full-year Zacks Consensus Estimates are calling for earnings of $3.64 per share and revenue of $20.77 billion. These results would represent year-over-year changes of +2.82% and -14.43%, respectively.
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. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. QCOM is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, QCOM is holding a Forward P/E ratio of 23.41. This represents a premium compared to its industry's average Forward P/E of 20.58.
We can also see that QCOM currently has a PEG ratio of 1.27. 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 industry currently had an average PEG ratio of 2.12 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 92, which puts it in the top 37% 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.
To follow QCOM in the coming trading sessions, be sure to utilize Zacks.com.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
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