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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 $193.18, moving -1.26% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day.

Coming into today, shares of the chipmaker had gained 5.58% in the past month. In that same time, the Computer and Technology sector gained 6.22%, while the S&P 500 gained 2.25%.

Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. In that report, analysts expect QRVO to post earnings of $2.45 per share. This would mark 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.

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.

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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. QRVO is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that QRVO has a Forward P/E ratio of 17.06 right now. This represents a discount compared to its industry's average Forward P/E of 18.62.

It is also worth noting that QRVO currently has a PEG ratio of 1.63. 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 1.33 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 207, putting it in the bottom 19% 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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