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Qorvo (QRVO) Gains But Lags Market: What You Should Know

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Zacks Equity Research
·3 min read
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In the latest trading session, Qorvo (QRVO) closed at $186.03, marking a +0.19% move from the previous day. The stock lagged the S&P 500's daily gain of 1.39%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.97%.

Coming into today, shares of the chipmaker had gained 13.73% in the past month. In that same time, the Computer and Technology sector gained 3.17%, while the S&P 500 gained 2.58%.

QRVO will be looking to display strength as it nears its next earnings release. On that day, QRVO is projected to report earnings of $2.66 per share, which would represent year-over-year growth of 43.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 22.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.67 per share and revenue of $3.86 billion. These totals would mark changes of +36.97% and +19.1%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for QRVO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. QRVO is currently a Zacks Rank #3 (Hold).

Looking at its valuation, QRVO is holding a Forward P/E ratio of 20.5. This valuation marks a premium compared to its industry's average Forward P/E of 20.22.

Investors should also note that QRVO has a PEG ratio of 1.3 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductors - Radio Frequency industry currently had an average PEG ratio of 1.43 as of yesterday's close.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Qorvo, Inc. (QRVO) : Free Stock Analysis Report
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Zacks Investment Research