In the latest trading session, Qorvo (QRVO) closed at $183.28, marking a +1.91% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.7%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.23%.
Coming into today, shares of the chipmaker had gained 5.1% in the past month. In that same time, the Computer and Technology sector lost 6.07%, while the S&P 500 gained 0.18%.
Investors will be hoping for strength from QRVO as it approaches its next earnings release. On that day, QRVO is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 55.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 32.11% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.45 per share and revenue of $3.98 billion. These totals would mark changes of +49.29% and +22.99%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for QRVO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 #2 (Buy) right now.
Digging into valuation, QRVO currently has a Forward P/E ratio of 19.04. Its industry sports an average Forward P/E of 19.04, so we one might conclude that QRVO is trading at a no noticeable deviation comparatively.
Meanwhile, QRVO’s PEG ratio is currently 1.36. 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 1.13 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 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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