Qorvo (QRVO) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Qorvo (QRVO) closed at $198.38, marking a -0.3% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day.
Heading into today, shares of the chipmaker had gained 11.23% over the past month, outpacing the Computer and Technology sector's gain of 10.8% and the S&P 500's gain of 5.48% in that time.
Investors will be hoping for strength from QRVO as it approaches its next earnings release, which is expected to be May 5, 2021. The company is expected to report EPS of $2.44, up 55.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 32.27% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for QRVO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. QRVO currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that QRVO has a Forward P/E ratio of 18.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.59.
Also, we should mention that QRVO has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductors - Radio Frequency industry currently had an average PEG ratio of 1.14 as of yesterday's close.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow QRVO in the coming trading sessions, be sure to utilize Zacks.com.
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