Buy, hold or sell QS stock now?

Solid State Battery Innovator QuantumScape Corp. It is planned that QS in 2025 will announce its third quarter results on October 22, after the market closes. The Zacks Consensus Estimate for the quarter’s loss per share is pegged at 18 cents. The loss estimate for the quarter to be reported was flat over the past 90 days and represents an improvement over a loss of 23 cents per share in the year-ago period.

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in 2025 The Zacks Consensus Estimate for QS’s loss is pegged at 78 cents per share, indicating a 17% year-over-year improvement. In the last four quarters, QuantumScape has beaten the lower estimates once, met them twice and missed them once.

QuantumScape Corporation Price and EPS Surprise
QuantumScape Corporation Price and EPS Surprise

QuantumScape Corporation price-eps-surprise | Quote from QuantumScape Corporation

Our proprietary model does not definitively predict revenue growth for QuantumScape this earnings season. The combination of a positive earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the likelihood of an earnings beat. This is not the case here. With our Income ESP Filter, you can discover the best stocks to buy or sell before you even report them.

QS Earnings has an ESP of 0.00% and a Zacks Rank #3.

You can see The full list of today’s Zacks #1 Rank stocks is here.

QuantumScape’s third quarter results will likely depend on a combination of operational progress and partnership monetization. QuantumScape entered its third phase in 2025. quarter with renewed financial momentum following expanded collaboration with VolkswagenVWAGY PowerCo, which will add up to 131 million in two years. USD of new cash payments, in addition to the 130 mln. USD already associated with the licensing agreement.

QuantumScape, which is already counting ahead of earnings, said in its most recent earnings call that it expects to write more than $10 million to PowerCo in the third quarter. USD for development work already done. While this may not be recognized as revenue, it is the first significant cash flow that can reduce the loss for the quarter.

The second in 2025 In the quarter, the company shipped the final Raptor-based B0 samples for package integration and safety testing. The next stage is the B1 samples, built using the more advanced Cobra process. Operationally, the move to the Cobra separator process – a 25x increase in productivity over the previous Raptor line – gives QuantumScape high B1 sample output. Effectively achieving this ramp is critical as it will affect technical milestones related to Volkswagen’s payments and overall reliability with other OEM partners.

September Unveiled at the IAA Mobility Show in Munich, Ducati’s V21L motorcycle was powered by QuantumScape’s QSE-5 cells manufactured using Cobra’s proprietary process, the world’s first real-world demonstration of anode-less solid-state lithium metal batteries.

QS shares have jumped more than 240% year to date, outperforming the industry. Yesterday, the stock hit a new 52-week high of $19.07 and finally closed the session at $17.85.

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Zacks Investment Research

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QuantumScape currently has an average brokerage recommendation (ABR) of 3.44 on a scale of 1 to 5 (strong buy to strong sell), calculated based on actual recommendations (buy, hold, sell, etc.) from nine brokerages.

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Zacks Investment Research

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QuantumScape now has two major automotive partners, Volkswagen and an undisclosed global OEM, officially participating in the solid-state battery program. In addition, collaborations with Murata Manufacturing and Corning Incorporated in ceramics help the company expand its partner ecosystem and market opportunities. A technological leap in production through the Cobra process and a financial runway stretching well into the last half of the decade bode well.

Yes, the QuantumScape rally this year represents real progress in both business and technology. However, the stock is currently trading near its 52-week high, so this may not be an ideal entry point for new investors. However, for existing holders, the company’s growth potential and industry validation help maintain investment.

Investors should watch for news on Cobra’s flagship shipments, new OEM collaborations and clarity on PowerCo-related cash flows in the third quarter earnings call before reassessing their positions.

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This article was originally published on Zacks Investment Research (zacks.com).

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