Qualcomm (QCOM) ended the recent trading session at $139.19, demonstrating a -0.04% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.79%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.64%.
The the stock of chipmaker has fallen by 11.07% in the past month, lagging the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56%.
The investment community will be paying close attention to the earnings performance of Qualcomm in its upcoming release. The company is slated to reveal its earnings on April 30, 2025. In that report, analysts expect Qualcomm to post earnings of $2.80 per share. This would mark year-over-year growth of 14.75%. Our most recent consensus estimate is calling for quarterly revenue of $10.64 billion, up 13.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.84 per share and a revenue of $43.59 billion, representing changes of +15.85% and +11.88%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.86% higher. Qualcomm is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Qualcomm is presently being traded at a Forward P/E ratio of 11.77. This denotes a discount relative to the industry's average Forward P/E of 19.99.
It is also worth noting that QCOM currently has a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry had an average PEG ratio of 1.37 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons 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.
To follow QCOM in the coming trading sessions, be sure to utilize 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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