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Qorvo Stock Fell 5.7% on Friday

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Stock trading at $74

Qorvo (QRVO) stock fell 5.7% on Friday to close trading at $74. The stock rose 13% from $69.32 on October 29 to $78.49 on November 1 driven by impressive quarterly results. It looks like Qorvo stock experienced a correction on Friday possibly due to profit booking.

Despite the recent pullback, Qorvo stock is still up over 11% in 2018. Qorvo announced second-quarter results for fiscal 2019 last week and reported revenue of $884.44 million, 3.3% above analyst estimates and 7.7% above prior-year sales of $821.58 million.

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The EPS were at $1.75 in the second quarter, 8% above analyst estimates of $1.62 and 15% above prior-year earnings of $1.52. Qorvo stock is trading at a high 2019 forward PE ratio of 70.1x and a 2020 PE ratio of 28.1x. Analysts expect revenue to rise 9.6% in 2019 and 7.7% in 2020. Its earnings are estimated to rise 21.7% this fiscal year and 14.7% next year.

Analyst price target

Out of the 24 analysts covering Qorvo, eight recommend a “buy,” 15 recommend a “hold,” and one recommends a “sell” on the stock. The analysts have an average 12-month stock target of $85.74 for Qorvo, indicating an upside potential of 16%.

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