Qualcomm (QCOM) Falls More Steeply Than Broader Market: What Investors Need to Know

Core Viewpoint - Qualcomm's stock has underperformed in recent trading sessions, with a notable decline in share price and projected earnings showing a slight decrease year-over-year [1][2]. Financial Performance - Qualcomm's projected earnings per share (EPS) for the upcoming quarter is $3.38, reflecting a 0.88% decrease from the same quarter last year [2]. - The consensus estimate for revenue is $12.25 billion, which represents a 4.99% increase from the prior-year quarter [2]. - For the entire fiscal year, earnings are expected to be $12.15 per share and revenue is projected at $45.69 billion, indicating changes of +1% and +3.52% respectively from the previous year [3]. Analyst Estimates and Market Sentiment - Recent modifications to analyst estimates for Qualcomm are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4]. - The Zacks Rank system, which incorporates estimate changes, currently ranks Qualcomm at 3 (Hold), with no changes in the consensus EPS estimate over the past month [6]. Valuation Metrics - Qualcomm's Forward P/E ratio stands at 13.93, which is significantly lower than the industry average of 35.72 [7]. - The company has a PEG ratio of 3.03, compared to the industry average PEG ratio of 1.94, indicating a higher expected earnings growth rate relative to its price [7]. Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 100, placing it in the top 41% of over 250 industries [8].