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

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In the latest trading session, Qorvo (QRVO - Free Report) closed at $188.44, marking a -1.99% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day.

Prior to today's trading, shares of the chipmaker had gained 9.19% over the past month. This has outpaced the Computer and Technology sector's gain of 8.44% and the S&P 500's gain of 5.72% in that time.

Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. On that day, QRVO is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 55.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 32.27% from the year-ago period.

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. 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. 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.

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 has moved 0.43% higher. QRVO currently has a Zacks Rank of #2 (Buy).

Digging into valuation, QRVO currently has a Forward P/E ratio of 18.03. This represents a discount compared to its industry's average Forward P/E of 18.48.

It is also worth noting that QRVO currently has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. QRVO's industry had an average PEG ratio of 1.13 as of yesterday's close.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% 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.

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


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