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Qualcomm (QCOM) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Qualcomm (QCOM - Free Report) standing at $171.48, reflecting a -1.5% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.

Shares of the chipmaker have appreciated by 3.19% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company plans to announce its earnings on November 6, 2024. The company is predicted to post an EPS of $2.56, indicating a 26.73% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.9 billion, up 14.69% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Qualcomm is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Qualcomm is holding a Forward P/E ratio of 15.93. This signifies no noticeable deviation in comparison to the average Forward P/E of 15.93 for its industry.

Investors should also note that QCOM has a PEG ratio of 1.4 right now. 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. The Wireless Equipment was holding an average PEG ratio of 2.6 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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