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Qorvo (QRVO) Stock Sinks As Market Gains: What You Should Know

Qorvo (QRVO) closed at $192.42 in the latest trading session, marking a -0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%.

Coming into today, shares of the chipmaker had gained 11.16% in the past month. In that same time, the Computer and Technology sector gained 5.19%, while the S&P 500 gained 4.77%.

Investors will be hoping for strength from QRVO as it approaches its next earnings release. The company is expected to report EPS of $2.44, up 55.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 32.27% from the year-ago period.

Investors might also notice recent changes to analyst estimates for QRVO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. QRVO is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, QRVO currently has a Forward P/E ratio of 17.99. For comparison, its industry has an average Forward P/E of 18.38, which means QRVO is trading at a discount to the group.

Investors should also note that QRVO has a PEG ratio of 1.29 right now. 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 was holding an average PEG ratio of 1.13 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 109, putting it in the top 43% 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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