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Qorvo (QRVO) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Qorvo (QRVO) closed at $117.96, marking a +0.87% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.08%.

Coming into today, shares of the chipmaker had gained 12.11% in the past month. In that same time, the Computer and Technology sector gained 4.7%, while the S&P 500 gained 3.81%.

Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. On that day, QRVO is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 9.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $850.66 million, up 2.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.69 per share and revenue of $3.16 billion, which would represent changes of -1.22% and +2.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for QRVO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 remained stagnant. QRVO currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, QRVO is currently trading at a Forward P/E ratio of 20.56. This valuation marks a premium compared to its industry's average Forward P/E of 19.71.

It is also worth noting that QRVO currently has a PEG ratio of 1.73. 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 1.52 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 15, putting it in the top 6% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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