Qorvo (QRVO) closed on the most recent trading day at $ 189.44, or -1.33% from the previous trading session. This move fell behind the S&P 500’s 0.86% daily loss.
Prior to today, shares of the chipmaker had gained 5.76% over the past month, surpassing the 5.54% gain of the computer and technology sector and the 3.22% gain of the S&P 500 during this period.
QRVO will seek to show its strength as the next publication of its results approaches. On that day, QRVO is expected to report earnings of $ 2.45 per share, which would represent 63.33% year-over-year growth. Meanwhile, our latest consensus estimate projects revenue of $ 1.08 billion, up 37.21% from the previous year’s quarter.
QRVO’s Zacks consensus estimates for the full year project earnings of $ 11.47 per share and revenue of $ 4.62 billion. These results would represent year-over-year variations of + 14.7% and + 14.94%, respectively.
Investors may also notice recent changes in analyst estimates for QRVO. These revisions generally reflect the latest short-term business trends, which can change frequently. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
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 sports a Zacks rank of # 3 (Hold).
Digging into the valuation, QRVO currently has a forward P / E ratio of 16.75. Its sector has an average forward P / E of 18.27, so one could conclude that QRVO is trading at a comparatively discount.
Meanwhile, QRVO’s PEG ratio is currently 1.6. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. The Semiconductor – Radio Frequency industry currently had an average PEG ratio of 1.3 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 130, which places it in the lowest 49% 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.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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