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

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Qorvo (QRVO - Free Report) closed at $182.91 in the latest trading session, marking a +0.75% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.47%.

Prior to today's trading, shares of the chipmaker had gained 9.8% over the past month. This has outpaced the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.

Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. The company is expected to report EPS of $2.45, up 63.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 37.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.47 per share and revenue of $4.62 billion. These totals would mark changes of +14.7% and +14.94%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for QRVO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. QRVO is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, QRVO is holding a Forward P/E ratio of 15.83. Its industry sports an average Forward P/E of 16.36, so we one might conclude that QRVO is trading at a discount comparatively.

Also, we should mention that QRVO has a PEG ratio of 1.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductors - Radio Frequency industry currently had an average PEG ratio of 1.2 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 198, putting it in the bottom 23% 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.

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


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