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

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Qorvo (QRVO - Free Report) closed at $152.88 in the latest trading session, marking a +0.27% move from the prior day. This move lagged the S&P 500's daily gain of 1.64%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.45%.

Coming into today, shares of the chipmaker had lost 4.29% in the past month. In that same time, the Computer and Technology sector lost 3.69%, while the S&P 500 lost 0.83%.

Qorvo will be looking to display strength as it nears its next earnings release. On that day, Qorvo is projected to report earnings of $2.75 per share, which would represent a year-over-year decline of 10.71%. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 1.07% from the prior-year quarter.

QRVO's full-year Zacks Consensus Estimates are calling for earnings of $11.87 per share and revenue of $4.62 billion. These results would represent year-over-year changes of +18.7% and +15.02%, respectively.

It is also important to note the recent changes to analyst estimates for Qorvo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qorvo is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Qorvo has a Forward P/E ratio of 12.85 right now. For comparison, its industry has an average Forward P/E of 13.74, which means Qorvo is trading at a discount to the group.

Meanwhile, QRVO's PEG ratio is currently 1.05. 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. Semiconductors - Radio Frequency stocks are, on average, holding a PEG ratio of 1.04 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 244, which puts it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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