Perilous Reversal Watch: Qorvo (QRVO)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Qorvo as such a stock due to the following factors:
- QRVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $121.6 million.
- QRVO has traded 247,045 shares today.
- QRVO is down 3.2% today.
- QRVO was up 23.2% yesterday.
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More details on QRVO:
Qorvo, Inc. provides technologies and radio frequency (RF) solutions for mobile, infrastructure, defense, and aerospace applications in the United States and internationally. The company operates through Mobile Products, and Infrastructure and Defense Products segments. QRVO has a PE ratio of 27. Currently there are 12 analysts that rate Qorvo a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Qorvo has been 1.9 million shares per day over the past 30 days. Qorvo has a market cap of $6.7 billion and is part of the technology sector and electronics industry. Shares are unchanged year-to-date as of the close of trading on Friday.
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Analysis:
rates Qorvo as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- QRVO's very impressive revenue growth greatly exceeded the industry average of 11.0%. Since the same quarter one year prior, revenues leaped by 95.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- QRVO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, QRVO has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
- QORVO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QORVO INC increased its bottom line by earning $2.60 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($4.48 versus $2.60).
- 40.21% is the gross profit margin for QORVO INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, QRVO's net profit margin of 0.62% is significantly lower than the industry average.
- The share price of QORVO INC has not done very well: it is down 17.98% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- You can view the full Qorvo Ratings Report.
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