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

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Qorvo (QRVO - Free Report) closed at $110.27 in the latest trading session, marking a +0.85% move from the prior day. This change outpaced the S&P 500's 0.21% gain on the day. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.02%.

Prior to today's trading, shares of the chipmaker had lost 17.1% over the past month. This has lagged the Computer and Technology sector's loss of 13.55% and the S&P 500's loss of 8.08% in that time.

Investors will be hoping for strength from Qorvo as it approaches its next earnings release, which is expected to be May 4, 2022. 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. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.32% lower within the past month. Qorvo currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Qorvo is holding a Forward P/E ratio of 8.51. This valuation marks a discount compared to its industry's average Forward P/E of 9.85.

Meanwhile, QRVO's PEG ratio is currently 0.85. 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. The Semiconductors - Radio Frequency industry currently had an average PEG ratio of 0.81 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 194, which puts it in the bottom 24% 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.

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


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