This story originally appeared on Zacks
Qorvo (QRVO) closed at $158.36 in the latest trading session, recording a +0.71% move from the day before. The move outpaced the S&P 500’s daily loss of 0.1%. Meanwhile, the Dow Jones lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.
As of today, the chip maker’s shares have lost 2.56% in the past month. At the same time, the computer and technology sector lost 1%, while the S&P 500 rose 3.67%.
Investors are hoping for Qorvo’s strength as it nears its next earnings release. The company is expected to report earnings per share of $2.75, down 10.71% from the previous quarter. Meanwhile, the Zacks Consensus revenue report expects net sales of $1.11 billion, up 1.07% from the same period last year.
Looking at the full year, our Zacks Consensus estimates that analysts expect earnings of $11.87 per share and revenue of $4.62 billion. These totals will indicate changes of +18.7% and +15.02%, respectively, from last year.
Investors may also notice recent changes in analyst estimates for Qorvo. These recent reviews tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperforming, with the #1 stock returning an average of +25% annually since 1988. Over the past month, The Zacks Consensus EPS estimate remained constant. Qorvo currently ranks Zacks 3rd (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 group discount.
It is also noteworthy that QRVO currently has a PEG ratio of 1.08. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Semiconductors – RF was holding an average PEG of 1.05 at yesterday’s closing price.
The semiconductor-RF industry is part of the computer and technology sector. This group has a Zacks Industry 200 rating, placing it in the bottom 22% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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