Qorvo (QRVO) Gains But Lags Market: What You Should Know
Qorvo (QRVO) closed at $165.33 in the latest trading session, marking a +0.3% move from the prior day.
In the latest trading session, Qorvo (QRVO) closed at $165.33, marking a +0.3% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day.
Coming into today, shares of the chipmaker had lost 7.79% in the past month. In that same time, the Computer and Technology sector lost 7.26%, while the S&P 500 lost 3.68%.
QRVO will be looking to display strength as it nears its next earnings release. On that day, QRVO is projected to report earnings of $3.25 per share, which would represent year-over-year growth of 33.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.25 billion, up 17.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.10 per share and revenue of $4.75 billion. These totals would mark changes of +21% and +18.25%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for QRVO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. QRVO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, QRVO is currently trading at a Forward P/E ratio of 13.62. Its industry sports an average Forward P/E of 13.83, so we one might conclude that QRVO is trading at a discount comparatively.
Meanwhile, QRVO's PEG ratio is currently 1.07. 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. The Semiconductors - Radio Frequency industry currently had an average PEG ratio of 0.86 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 240, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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