Qorvo (QRVO) closed at $182.13 in the latest trading session, marking a -0.13% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.58%.
Prior to today’s trading, shares of the chipmaker had lost 2.77% over the past month. This has lagged the Computer and Technology sector’s gain of 2.08% and the S&P 500’s gain of 0.16% in that time.
QRVO will be looking to display strength as it nears its next earnings release. In that report, analysts expect QRVO to post earnings of $3.25 per share. This would mark 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.
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 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. QRVO is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, QRVO is currently trading at a Forward P/E ratio of 15.07. Its industry sports an average Forward P/E of 17.39, so we one might conclude that QRVO is trading at a discount comparatively.
Meanwhile, QRVO’s PEG ratio is currently 1.19. 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. QRVO’s industry had an average PEG ratio of 1.05 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 127, which puts it in the top 50% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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