Qualcomm Stock Analysis: Recent Performance and Outlook

Qualcomm Stock

Qualcomm (NASDAQ:QCOM) closed at $109.20 in the latest trading session, experiencing a -0.47% decline from the previous day’s closing price. This performance lagged behind the S&P 500’s marginal gain of 0.02% on the same day. Meanwhile, the Dow Jones Industrial Average (Dow) fell 0.2%, while the tech-heavy Nasdaq Composite gained 0.22%.

In the preceding month, shares of the semiconductor chipmaker had faced a 3.57% decline, which was slightly worse than the Computer and Technology sector’s loss of 3.18% and the S&P 500’s dip of 2.86% during the same period.

Investors are keenly awaiting Qualcomm’s upcoming earnings release, hoping for a strong performance. Analysts anticipate the company to report earnings per share (EPS) of $1.91, marking a 38.98% decrease from the previous year’s quarter. The consensus estimate for quarterly revenue is $8.51 billion, reflecting a 25.3% drop compared to the year-ago period.

For the full fiscal year, Zacks Consensus Estimates predicted earnings of $8.31 per share and revenue of $35.68 billion. These figures would signify declines of -33.68% and -19.27%, respectively, from the prior year’s results.

It’s worth noting that there have been recent changes in analyst estimates for Qualcomm, which often reflect the latest short-term business trends. Such estimate revisions can be seen as indications of optimism or pessimism about the company’s future prospects.

Regarding valuation, Qualcomm currently has a Forward Price-to-Earnings (P/E) ratio of 13.2, which is slightly above the industry average Forward P/E of 12.61.

Additionally, the Price/Earnings to Growth (PEG) ratio for Qualcomm stands at 0.83. This metric is similar to the traditional P/E ratio but also considers the expected earnings growth rate. In comparison, the Wireless Equipment industry had an average PEG ratio of 1.34 as of the previous trading session.

In summary, Qualcomm’s stock performance has faced challenges in the past month, reflecting broader sector trends. Investors are awaiting its upcoming earnings report for insights into the company’s performance. The Zacks Rank indicates a “Hold” rating for now, and valuation metrics suggest that Qualcomm is trading at a slight premium to its industry peers.

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