Qualcomm (QCOM) ended the recent trading session at $176.31, demonstrating a +1.6% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the chipmaker had lost 10.66% over the past month, lagging the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.
Market participants will be closely following the financial results of Qualcomm in its upcoming release. The company plans to announce its earnings on November 4, 2026. The company's upcoming EPS is projected at $2.18, signifying a 27.33% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $10.14 billion, reflecting a 10.04% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $10.54 per share and a revenue of $42.88 billion, demonstrating changes of -12.39% and -2.86%, respectively, from the preceding year.
Any recent changes to analyst estimates for Qualcomm should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, there's been a 0.22% fall in the Zacks Consensus EPS estimate. Qualcomm is currently a Zacks Rank #4 (Sell).
Digging into valuation, Qualcomm currently has a Forward P/E ratio of 17.34. This denotes a discount relative to the industry average Forward P/E of 32.3.
One should further note that QCOM currently holds a PEG ratio of 2.8. 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 currently had an average PEG ratio of 1.11 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).