This story originally appeared on Zacks
Qorvo (QRVO) closed at $158.36 in the latest trading session, marking a +0.71% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.1%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the chipmaker had lost 2.56% in the past month. In that same time, the Computer and Technology sector lost 1%, while the S&P 500 gained 3.67%.
Investors will be hoping for strength from Qorvo as it approaches its next earnings release. The company is expected to report EPS of $2.75, down 10.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 1.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.87 per share and revenue of $4.62 billion. These totals would mark changes of +18.7% and +15.02%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Qorvo. These recent revisions tend to reflect the evolving nature of 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Qorvo is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Qorvo is currently trading at a Forward P/E ratio of 13.25. For comparison, its industry has an average Forward P/E of 13.63, which means Qorvo is trading at a discount to the group.
It is also worth noting that QRVO currently has a PEG ratio of 1.08. 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. The Semiconductors – Radio Frequency was holding an average PEG ratio of 1.05 at yesterday’s closing price.
The Semiconductors – Radio Frequency industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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