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

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In the latest trading session, Qorvo (QRVO - Free Report) closed at $177.88, marking a +0.92% move from the previous day. This move outpaced the S&P 500's daily loss of 0.11%.

Coming into today, shares of the chipmaker had lost 2.41% in the past month. In that same time, the Computer and Technology sector gained 7.15%, while the S&P 500 gained 2.23%.

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 $2.45 per share, which would represent year-over-year growth of 63.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.08 billion, up 37.21% from the prior-year quarter.

QRVO's full-year Zacks Consensus Estimates are calling for earnings of $11.47 per share and revenue of $4.62 billion. These results would represent year-over-year changes of +14.7% and +14.94%, respectively.

Any recent changes to analyst estimates for QRVO should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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

Valuation is also important, so investors should note that QRVO has a Forward P/E ratio of 15.37 right now. This represents a discount compared to its industry's average Forward P/E of 16.68.

It is also worth noting that QRVO currently has a PEG ratio of 1.47. 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. QRVO's industry had an average PEG ratio of 1.19 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.

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


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