Qualcomm (QCOM) Rises But Trails Market: What Investors Should Know

Core Viewpoint - Qualcomm's stock performance has shown resilience, with a notable appreciation over the past month, outperforming both the Computer and Technology sector and the S&P 500 index [1][2]. Financial Performance Expectations - Qualcomm is set to announce its earnings on February 5, 2025, with an expected EPS of $2.93, reflecting a 6.55% increase year-over-year. Revenue is anticipated to reach $10.92 billion, indicating a 9.9% rise from the same quarter last year [2]. - For the full year, analysts project earnings of $11.21 per share and revenue of $42.3 billion, representing increases of 9.69% and 8.57% respectively compared to the previous year [3]. Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Qualcomm suggest a positive outlook, with the Zacks Consensus EPS estimate rising by 0.44% in the past month. Qualcomm currently holds a Zacks Rank of 2 (Buy) [3][5]. - The Zacks Rank system has a strong historical performance, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5]. Valuation Metrics - Qualcomm's Forward P/E ratio stands at 15.27, which is lower than the industry average of 15.62, indicating a potential valuation opportunity [5]. - The company has a PEG ratio of 2.32, which is favorable compared to the Wireless Equipment industry's average PEG ratio of 3.41 [6]. Industry Context - The Wireless Equipment industry, part of the broader Computer and Technology sector, is currently ranked 83 in the Zacks Industry Rank, placing it in the top 34% of over 250 industries [6][7].