Qualcomm (NASDAQ: QCOM) closed Thursday’s session down 2.98%, settling at $242.57, as the broader market posted gains across major indexes.
The decline stood in contrast to the S&P 500, which added 0.41% on the day, while the Dow Jones Industrial Average climbed a stronger 1.73%.
The technology-heavy Nasdaq edged down 0.09%, making Qualcomm’s drop broadly in line with the tech sector’s softer performance on the session.
Despite the single-day pullback, Qualcomm shares had gained 29.83% over the prior month, a run that significantly outpaced the Computer and Technology sector’s 10.03% gain over the same period.
That one-month surge also left the S&P 500’s 4.59% gain over the same stretch well behind, highlighting the chipmaker’s recent outperformance relative to the wider market.
Attention is now turning to Qualcomm’s upcoming earnings disclosure, where the company is projected to report earnings of $2.27 per share, representing a year-over-year decline of 18.05%.
Revenue for the upcoming quarter is currently forecast at $9.7 billion, reflecting a 6.46% decline compared to the corresponding quarter of the prior year.
Full-year estimates from the Zacks Consensus project earnings of $10.79 per share and revenue of $42.92 billion, representing year-over-year changes of -10.31% and -2.76% respectively.
The Zacks Consensus EPS estimate has moved 0.38% lower over the past 30 days, and Qualcomm currently holds a Zacks Rank of #4, which translates to a Sell rating under that system.
On valuation, Qualcomm trades at a forward price-to-earnings ratio of 23.17, a notable discount to its industry’s average forward P/E of 51.74, suggesting the stock is priced well below its peer group.
However, the company’s PEG ratio of 22.94 stands in sharp contrast to the Electronics – Semiconductors industry average PEG of 2.18, raising questions about how anticipated earnings growth factors into the current valuation picture.
The Electronics – Semiconductors industry currently holds a Zacks Industry Rank of 50, placing it in the top 21% of more than 250 industries tracked, signaling relative strength within the broader sector landscape.
