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Qorvo (QRVO) closed at $165.87 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.75%.
Prior to today’s trading, shares of the chipmaker had lost 8.71% over the past month. This has lagged the Computer and Technology sector’s loss of 2.38% and the S&P 500’s loss of 0.05% in that time.
Wall Street will be looking for positivity from QRVO as it approaches its next earnings report date. On that day, QRVO is projected to report earnings of $3.25 per share, which would represent year-over-year growth of 33.74%. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 17.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.10 per share and revenue of $4.75 billion. These totals would mark changes of +21% and +18.25%, respectively, from last year.
Investors might also notice 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. QRVO is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that QRVO has a Forward P/E ratio of 13.6 right now. This represents a discount compared to its industry’s average Forward P/E of 13.76.
Also, we should mention that QRVO has a PEG ratio of 1.07. 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 0.86 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 227, which puts it in the bottom 11% 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.
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