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Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know

Qualcomm (QCOM) closed at $55.27 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.16%.

Coming into today, shares of the chipmaker had lost 3.55% in the past month. In that same time, the Computer and Technology sector lost 0.37%, while the S&P 500 gained 0.49%.

Wall Street will be looking for positivity from QCOM as it approaches its next earnings report date. This is expected to be January 30, 2019. On that day, QCOM is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 10.2%. Our most recent consensus estimate is calling for quarterly revenue of $4.88 billion, down 19.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $20.41 billion, which would represent changes of +3.79% and -10.2%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. 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 14.57. This represents a discount compared to its industry's average Forward P/E of 17.66.

Also, we should mention that QCOM has a PEG ratio of 1.57. 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 1.69 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 31, which puts it in the top 13% 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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