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

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Qorvo (QRVO - Free Report) closed the most recent trading day at $183.35, moving +0.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.33%.

Heading into today, shares of the chipmaker had lost 1.22% over the past month, lagging the Computer and Technology sector's gain of 6.03% and the S&P 500's gain of 1.74% in that time.

Investors will be hoping for strength from QRVO as it approaches its next earnings release. The company is expected to report EPS of $2.45, up 63.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.08 billion, up 37.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.47 per share and revenue of $4.62 billion, which would represent changes of +14.7% and +14.94%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for QRVO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 currently a Zacks Rank #3 (Hold).

Looking at its valuation, QRVO is holding a Forward P/E ratio of 15.95. Its industry sports an average Forward P/E of 17.26, so we one might conclude that QRVO is trading at a discount comparatively.

Investors should also note that QRVO has a PEG ratio of 1.52 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. QRVO's industry had an average PEG ratio of 1.23 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 198, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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