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

In the latest trading session, Qorvo (QRVO – Free Report) closed at $152.07, marking a +0.44% move from the previous day. The stock lagged the S&P 500’s daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.

Prior to today’s trading, shares of the chipmaker had lost 0.79% over the past month. This has was narrower than the Computer and Technology sector’s loss of 1.01% and lagged the S&P 500’s gain of 0.39% in that time.

Wall Street will be looking for positivity from Qorvo as it approaches its next earnings report date. In that report, analysts expect Qorvo to post earnings of $2.75 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 1.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.87 per share and revenue of $4.62 billion, which would represent changes of +18.7% and +15.02%, respectively, from the prior year.

It is also important to note the 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.

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.

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 remained stagnant. Qorvo is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Qorvo has a Forward P/E ratio of 12.76 right now. This represents a discount compared to its industry’s average Forward P/E of 13.14.

Meanwhile, QRVO’s PEG ratio is currently 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Semiconductors – Radio Frequency industry currently had an average PEG ratio of 1.01 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 243, which puts it in the bottom 5% 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.