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Based in Greensboro, North Carolina, Qorvo, Inc. (QRVO) develops and commercializes technologies and products for wireless, wired, and power markets. The company is valued at a market cap of $9.7 billion and delivers core radio frequency (RF) and power technologies and solutions to mobile, infrastructure, defense, aerospace, and power management markets.
Companies worth less than $10 billion are generally described as “mid-cap” stocks, and Qorvo fits this criterion perfectly. The company is renowned for its innovation and expertise in several areas, including space-qualified technology, radio frequency (RF) modules, and prototyping. Its QM19000 was the first 5G RF front end in the world.
Shares of QRVO are trading 21.5% below their 52-week high of $130.99, which they reached on Jul. 16. Shares of this tech company have declined 9.6% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 4.9% return over the same time frame.
In the longer term, QRVO stock is down 8.6% on a YTD basis, lagging behind SPX’s 20.5% gains. Moreover, shares of QRVO have gained 8.5% over the past 52 weeks, underperforming SPX’s 34.5% returns over the same time frame.
To confirm its bearish trend, QRVO has been trading below its 200-day moving average since early September and has remained below its 50-day moving average since early August.
Shares of QRVO increased marginally after its Q1 earnings release on Jul. 30. The company reported EPS of $0.87 per share, which surpassed the Wall Street estimates of $0.71. Its revenue of $886.7 million increased 36.2% year-over-year while beating the consensus estimates.
However, on Sep. 16, shares of QRVO fell 6.7% after Wall Street analysts expressed concerns about weak demand for the iPhone 16 models relative to the first-weekend sales of the iPhone 15 models last year due to intense competition in the Chinese market and the unavailability of Apple Intelligence during the iPhone 16 release.
QRVO has outperformed its rival, Skyworks Solutions, Inc. (SWKS), which has gained 2.6% over the past 52.
Given QRVO’s underperformance relative to the broader market, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 22 analysts in coverage, and the mean price target of $123.89 suggests a premium of 20.2% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
