Qualcomm (QCOM) closed the most recent trading day at $171.40, moving +0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.03%.
Shares of the chipmaker have appreciated by 10.74% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.81%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company plans to announce its earnings on February 5, 2025. It is anticipated that the company will report an EPS of $2.93, marking a 6.55% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $10.92 billion, indicating a 9.9% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.21 per share and revenue of $42.3 billion. These totals would mark changes of +9.69% and +8.57%, respectively, from last year.
Investors should also take note of any recent adjustments to 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. Qualcomm currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 15.27. This represents a discount compared to its industry's average Forward P/E of 15.62.
We can additionally observe that QCOM currently boasts a PEG ratio of 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Wireless Equipment stocks are, on average, holding a PEG ratio of 3.41 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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