In the latest trading session, Qorvo (QRVO) closed at $158.33, marking a -1.28% move from the previous day. This change lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.54%.
Heading into today, shares of the chipmaker had gained 8.18% over the past month, outpacing the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 3.5% in that time.
Investors will be hoping for strength from QRVO as it approaches its next earnings release. The company is expected to report EPS of $2.65, up 42.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.06 billion, up 22.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $3.85 billion, which would represent changes of +36.02% and +18.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for QRVO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. QRVO is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that QRVO has a Forward P/E ratio of 18.62 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.62.
It is also worth noting that QRVO currently has a PEG ratio of 1.18. 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 1.34 as of yesterday's close.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
