The shares of this semiconductor company are about even with their recommended price in January, but our contributor is no longer sold on the stock.
Qorvo, Inc. (QRVO)
From Cabot Top Ten Trader
Qorvo was a name I was very excited about around year-end, because it had the story (leading components for 5G smartphones), numbers (huge Q3 earnings beat) and chart (gargantuan-volume breakout from a five-year base!) to tell us it was a leading glamour name of the bull move.
But things change! The pandemic hit China first, which disrupted all sorts of chip-related firms, and of course the stock went over the falls even further during March. To its credit, QRVO has since come back and, like most things out there, looks poised for higher prices.
That said, we sold the stock from Cabot Growth Investor in February and I’m not overly interested in getting back in. That’s not because I’m negative on the stock. As I wrote above, it probably goes higher, but we got in because we thought it could be a dynamic leader, but that doesn’t appear to be the case now.
Analysts see earnings down this year and up some next, but nothing to pound the table over. Long story short, QRVO looks OK, but we think there are better leading stocks to be in during the new reality.
Michael Cintolo, Cabot Top Ten Trader, cabotwealth.com, 978-745-5532, June 7, 2020