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

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Qorvo (QRVO - Free Report) closed the most recent trading day at $180.07, moving -1.23% from the previous trading session. This change lagged the S&P 500's 0.23% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.43%.

Coming into today, shares of the chipmaker had gained 15.04% in the past month. In that same time, the Computer and Technology sector gained 4.19%, while the S&P 500 gained 3.86%.

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 $2.66 per share, which would represent year-over-year growth of 43.01%. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 22.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.65 per share and revenue of $3.86 billion, which would represent changes of +36.65% and +19.1%, respectively, from the prior year.

Investors might also notice 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.06% 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 21.08. This represents a premium compared to its industry's average Forward P/E of 21.04.

It is also worth noting that QRVO currently has a PEG ratio of 1.34. 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 1.48 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 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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