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Qualcomm (QCOM) closed the most recent trading day at $159.08, moving -0.9% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Shares of the chipmaker witnessed a gain of 2.59% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.17% and the S&P 500's loss of 2.8%.
The investment community will be closely monitoring the performance of Qualcomm in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2025. In that report, analysts expect Qualcomm to post earnings of $2.92 per share. This would mark year-over-year growth of 6.18%. Meanwhile, the latest consensus estimate predicts the revenue to be $10.89 billion, indicating a 9.61% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.14 per share and a revenue of $42.19 billion, indicating changes of +9% and +8.29%, respectively, from the former year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Qualcomm is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 14.41. This signifies a discount in comparison to the average Forward P/E of 16.42 for its industry.
Also, we should mention that QCOM has a PEG ratio of 2.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Wireless Equipment industry had an average PEG ratio of 3.09 as trading concluded yesterday.