Qorvo: A 5G Stock Worth Buying

NASDAQ: QRVO | Qorvo, Inc. News, Ratings, and Charts

QRVO – The 5G market is growing at an accelerated pace and we think Qorvo (QRVO) is positioned nicely to benefit significantly from this based on its sound financials, market dominance and continued product innovation. The company is expected to witness greater demand for its chips in the upcoming months. Let’s take a closer look at how Qorvo rolls.

Qorvo, Inc. (QRVO) is  the leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications. Its stock price has more than doubled since hitting its 52-week low of $67.54 on March 23, 2020. The stock has gained 141.5% since then to close yesterday’s trading session at $171.13, surpassing the tech-heavy Nasdaq’s 101.6% returns.

QRVO supplies RF chips to several major smartphone companies, including  Apple Inc. (AAPL) and Samsung. So, it is strategically positioned to gain from the growing 5G market.

But with the adoption of 5G growing in several other sectors, such as automobile and healthcare, we believe QRVO should witness even greater demand for its chips in the coming months.

Check out our 5G Industry Report for 2021

Here is why QRVO could maintain the momentum:

Increasing Adoption of 5G

QRVO should witness significant demand for its core technologies and RF systems in the booming 5G smartphone market.

Besides supporting the global rollout of 5G network enabled smartphones, the company has been selected to supply 5G/LTE, C-V2X and Wi-Fi automotive-qualified products to multiple original equipment manufacturers (OEMs). including Audi, Bayerische Motoren Werke Aktiengesellschaft (BMWYY) and Aktiebolaget Volvo (VLVLY).

Impressive Historical Growth

QRVO’s revenue has increased at a CAGR of 8.1% over the past three years. The company’s EBITDA and EPS increased at CAGRs of 16.3% and 165.9%, respectively, over the same period. This can be attributed to its  continuous product innovations over the years.

Impressive Recent Financials

The company’s revenue increased 26% year-over-year to $1.09 billion for the fiscal 2021 third quarter ended January 2. Its net income increased 24.6% year-over-year to $201.04 million and its non-GAAP EPS increased 65.6% year-over-year to $3.08.

In addition,  QRVO surpassed a consensus EPS estimates in each of the trailing four quarters.

Favorable Analyst Sentiment

Analysts expect the company’s revenue to increase 32.1% for the quarter ending March 31, 2021 and 23% in fiscal 2021. Its EPS is expected to grow 54.8% for the quarter ending March 31,  49.6% in fiscal 2021 and at a rate of 16.5% per annum over the next five years.

The stock has an average broker rating of 1.62. Of 23 Wall Street Analysts that have rated the stock, two have rated it ‘Strong Buy’ and 15 have rated it ‘Buy.’

POWR Ratings Show Promise

QRVO has an overall rating of B, which equates to Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. QRVO has an A grade for Growth. This is consistent with analyst expectations that its revenue and EPS will increase.

The stock also has an A grade  for Quality, given its impressive gross profit margin of 45.5%, among other favorable qualitative aspects.

In addition,  QRVO has a B grade for Sentiment, which is  sync with the favorable analyst sentiment.

We have also given QRVO grades for Momentum, Stability and Value. Get all QRVO’s ratings here.

Of 96 stocks in the B-rated Semiconductor & Wireless Chip industry, QRVO is ranked #14.

There are several other top-rated stocks in the same industry. Click here to access them.

Bottom Line

QRVO is well-positioned to gain from the growing 5G market based on its financial strength and increasing customer base.

Check out our 5G Industry Report for 2021

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

How to Ride the 2021 Stock Market Bubble

7 Best ETFs for the NEXT Bull Market

5 WINNING Stocks Chart Patterns

 


QRVO shares were trading at $180.03 per share on Friday afternoon, up $8.90 (+5.20%). Year-to-date, QRVO has gained 8.28%, versus a 4.45% rise in the benchmark S&P 500 index during the same period.


About the Author: Manisha Chatterjee


Since she was young, Manisha has had a strong interest in the stock market. She majored in Economics in college and has a passion for writing, which has led to her career as a research analyst. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
QRVOGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

A Case of Stock Market Whiplash

Just when the stock market (SPY) was inches away from a record high at 4,000 it got saddled with 6 days of downward pressure. Why did this happen? Is the pain over? What happens next? Read on below for answers …

:  |  News, Ratings, and Charts

2 Renewable Energy Stocks to Add to Your Watchlist

The clean energy industry is witnessing an unprecedented rally, with governments worldwide investing heavily to reduce their nations’ carbon footprints. Companies including Hubbell (HUBB) and Hallador Energy (HNRG) have been capitalizing on this trend and have delivered solid returns over the past year. Driven by federal subsidies and a rising awareness-driven demand for clean energy products, we think both names should keep climbing in the upcoming months.

:  |  News, Ratings, and Charts

Why I Believe Gold Will Rally, and 3 Stocks That Stand to Benefit the Most

While treasuries and tech stocks bounced back, the rest of market continued its decline Friday. David Cohne sees inflation as a major risk for investors and believes that gold will start a new rally. This should benefit mining stocks such as Gold Corporation (GOLD), Newmont Corp. (NEM), and Kinross Gold Corporation (KGC).

:  |  News, Ratings, and Charts

Cybersecurity Industry in 2021: The Complete Investors Guide

The cybersecurity industry expects to see tremendous growth in the next decade. Therefore investors should consider adding McAfee Corp. (MCFE), Radware Ltd. (RDWR), Qualys Inc. (QLYS), Proofpoint Inc. (PFPT), and Norton Lifelock Inc. (NLOK) to their portfolios.

:  |  News, Ratings, and Charts

Why I Believe Gold Will Rally, and 3 Stocks That Stand to Benefit the Most

While treasuries and tech stocks bounced back, the rest of market continued its decline Friday. David Cohne sees inflation as a major risk for investors and believes that gold will start a new rally. This should benefit mining stocks such as Gold Corporation (GOLD), Newmont Corp. (NEM), and Kinross Gold Corporation (KGC).

Read More Stories

More Qorvo, Inc. (QRVO) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All QRVO News