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Qorvo (QRVO) Gains As Market Dips: What You Should Know

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Qorvo (QRVO - Free Report) closed the most recent trading day at $114.43, moving +0.1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.27%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the chipmaker had lost 8.92% over the past month, lagging the Computer and Technology sector's gain of 7.53% and the S&P 500's gain of 7.36% in that time.

Investors will be hoping for strength from Qorvo as it approaches its next earnings release. 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.

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. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qorvo is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Qorvo is holding a Forward P/E ratio of 8.73. This valuation marks a discount compared to its industry's average Forward P/E of 10.72.

Meanwhile, QRVO's PEG ratio is currently 0.87. 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 0.84 based on yesterday's closing prices.

The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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