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Qualcomm (QCOM) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Qualcomm (QCOM - Free Report) closed at $181.03, marking a -3.54% move from the previous day. This change lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.8%.

Shares of the chipmaker witnessed a gain of 13.54% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.04%, and the S&P 500's gain of 3.57%.

Analysts and investors alike will be keeping a close eye on the performance of Qualcomm in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. It is anticipated that the company will report an EPS of $2.87, marking a 6.69% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.77 billion, up 5.16% from the year-ago period.

QCOM's full-year Zacks Consensus Estimates are calling for earnings of $11.89 per share and revenue of $43.65 billion. These results would represent year-over-year changes of +16.34% and 0%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Qualcomm. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Qualcomm is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Qualcomm is currently trading at a Forward P/E ratio of 15.76. This denotes a discount relative to the industry average Forward P/E of 41.6.

Investors should also note that QCOM has a PEG ratio of 2.22 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.09.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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