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

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In the latest trading session, Qorvo (QRVO - Free Report) closed at $193.09, marking a +0.88% move from the previous day. This change lagged the S&P 500's 1.02% gain on the day.

Prior to today's trading, shares of the chipmaker had gained 4.66% over the past month. This has outpaced the Computer and Technology sector's gain of 1.36% and the S&P 500's gain of 3.01% in that time.

Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. This is expected to be August 4, 2021. 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.

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.

It is also important to note the recent changes to analyst estimates for QRVO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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

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).

In terms of valuation, QRVO is currently trading at a Forward P/E ratio of 16.69. This valuation marks a discount compared to its industry's average Forward P/E of 18.53.

Investors should also note that QRVO has a PEG ratio of 1.59 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. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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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