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Qorvo (QRVO) Dips More Than Broader Markets: What You Should Know

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Qorvo (QRVO - Free Report) closed at $123.63 in the latest trading session, marking a -1.49% move from the prior day. This change lagged the S&P 500's 1.3% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.45%.

Prior to today's trading, shares of the chipmaker had lost 6.16% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.81% and lagged the S&P 500's loss of 5.33% in that time.

Wall Street will be looking for positivity from Qorvo as it approaches its next earnings report date. In that report, analysts expect Qorvo to post earnings of $2.94 per share. This would mark year-over-year growth of 7.3%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 7.23% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.18 per share and revenue of $4.63 billion, which would represent changes of +21.8% and +15.31%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Qorvo. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. Qorvo is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Qorvo is currently trading at a Forward P/E ratio of 10.31. Its industry sports an average Forward P/E of 11.45, so we one might conclude that Qorvo is trading at a discount comparatively.

Also, we should mention that QRVO has a PEG ratio of 1.02. 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. QRVO's industry had an average PEG ratio of 0.94 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 111, putting it in the top 44% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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