Qorvo (QRVO) exceeds stock market gains: what you need to know
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Qorvo (QRVO) closed at $ 173.33 in the last trading session, marking a move of + 1.26% from the previous day. This move topped the S&P 500 daily gain by 0.95%.
As of today, shares of the chipmaker had lost 7.38% over the past month. At the same time, the IT and tech sector gained 0.28%, while the S&P 500 lost 1.87%.
Investors are hopeful that QRVO will gain strength as its next earnings release approaches. The company is expected to post EPS of $ 3.25, up 33.74% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 1.25 billion, up 17.94% from the previous year’s quarter.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 12.10 per share and revenue of $ 4.75 billion. These totals would mark changes of + 21% and + 18.25%, respectively, from a year ago.
Any recent changes in analysts’ estimates for QRVO should also be noted by investors. Recent revisions tend to reflect the latest short-term business trends. 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 short-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
Zacks’ ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Zacks Consensus EPS estimate has remained stagnant over the past month. QRVO currently holds a Zacks rank of # 2 (Buy).
In view of its valuation, QRVO has a forward P / E ratio of 14.15. For comparison, its industry has an average forward P / E of 16.39, which means that QRVO is trading at a discount to the group.
Investors should also note that QRVO currently has a PEG ratio of 1.11. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. The Semiconductor – Radio Frequency industry currently had an average PEG ratio of 0.98 at yesterday’s close.
The Semiconductors – Radiofrequency industry is part of the Information technology and technology sector. This group has a Zacks Industry Rank of 198, which places it in the lowest 23% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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