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Qorvo (QRVO) closed at $169.26 in the latest trading session, marking a +1.24% move from the prior day. This move outpaced the S&P 500’s daily gain of 1.15%.
Coming into today, shares of the chipmaker had lost 10.07% in the past month. In that same time, the Computer and Technology sector lost 6.41%, while the S&P 500 lost 4.67%.
Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. The company is expected to report EPS of $2.45, up 0.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 17.94% from the year-ago period.
QRVO’s full-year Zacks Consensus Estimates are calling for earnings of $12.10 per share and revenue of $4.75 billion. These results would represent year-over-year changes of +21% and +18.25%, respectively.
It is also important to note the recent changes to analyst estimates for QRVO. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. QRVO is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, QRVO is holding a Forward P/E ratio of 13.82. This valuation marks a discount compared to its industry’s average Forward P/E of 15.81.
Investors should also note that QRVO has a PEG ratio of 1.09 right now. 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 0.91 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 195, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Qorvo, Inc. (QRVO): Free Stock Analysis Report
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