In the latest trading session, Qualcomm (QCOM) closed at $154.80, marking a +1.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.05%.
Prior to today's trading, shares of the chipmaker had lost 0.66% lagged the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%.
The upcoming earnings release of Qualcomm will be of great interest to investors. The company's earnings report is expected on July 30, 2025. The company is expected to report EPS of $2.68, up 15.02% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.35 billion, showing a 10.24% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $11.71 per share and a revenue of $43.54 billion, demonstrating changes of +14.58% and +11.76%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Qualcomm is currently a Zacks Rank #3 (Hold).
In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 13.04. This expresses a discount compared to the average Forward P/E of 27.6 of its industry.
One should further note that QCOM currently holds a PEG ratio of 1.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.6.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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