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

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Qorvo (QRVO - Free Report) closed at $130.88 in the latest trading session, marking a +0.14% move from the prior day. The stock lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 0.19%.

Heading into today, shares of the chipmaker had lost 4.53% over the past month, lagging the Computer and Technology sector's gain of 4.34% and the S&P 500's gain of 5.51% in that time.

Qorvo will be looking to display strength as it nears its next earnings release. On that day, Qorvo is projected to report earnings of $2.94 per share, which would represent year-over-year growth of 7.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 7.23% from the year-ago period.

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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Qorvo is currently trading at a Forward P/E ratio of 10.73. This valuation marks a discount compared to its industry's average Forward P/E of 12.06.

It is also worth noting that QRVO currently has a PEG ratio of 1.06. 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 0.98 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 81, which puts it in the top 32% 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.

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