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

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Qorvo (QRVO - Free Report) closed at $156.91 in the latest trading session, marking a +0.3% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Coming into today, shares of the chipmaker had gained 6.98% in the past month. In that same time, the Computer and Technology sector gained 2.85%, while the S&P 500 gained 4.32%.

Qorvo will be looking to display strength as it nears its next earnings release. In that report, analysts expect Qorvo to post earnings of $2.75 per share. This would mark 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.

Investors might also notice recent changes to analyst estimates for Qorvo. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Qorvo currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Qorvo is holding a Forward P/E ratio of 13.18. This represents a discount compared to its industry's average Forward P/E of 13.44.

Meanwhile, QRVO's PEG ratio is currently 1.08. 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. QRVO's industry had an average PEG ratio of 1.04 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 244, putting it in the bottom 4% 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.

To follow QRVO in the coming trading sessions, be sure to utilize Zacks.com.


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