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

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Qorvo (QRVO - Free Report) closed at $173.33 in the latest trading session, marking a +1.26% move from the prior day. This move outpaced the S&P 500's daily gain of 0.95%.

Coming into today, shares of the chipmaker had lost 7.38% in the past month. In that same time, the Computer and Technology sector gained 0.28%, while the S&P 500 lost 1.87%.

Investors will be hoping for strength from QRVO as it approaches its next earnings release. The company is expected to report EPS of $3.25, up 33.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.25 billion, up 17.94% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.10 per share and revenue of $4.75 billion. These totals would mark changes of +21% and +18.25%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. QRVO is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, QRVO is holding a Forward P/E ratio of 14.15. For comparison, its industry has an average Forward P/E of 16.39, which means QRVO is trading at a discount to the group.

Investors should also note that QRVO has a PEG ratio of 1.11 right now. 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 0.98 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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