While the S&P 500 is up 13% since May 2025, Qorvo (currently trading at $84.98 per share) has lagged behind, posting a return of 7.8%. This might have investors contemplating their next move.

Is now the time to buy Qorvo, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.

Why Do We Think Qorvo Will Underperform?

We're swiping left on Qorvo for now. Here are three reasons we avoid QRVO and a stock we'd rather own.

1. Long-Term Revenue Growth Flatter Than a Pancake

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Qorvo struggled to consistently increase demand as its $3.66 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and signals it’s a low quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.

2. Shrinking Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Looking at the trend in its profitability, Qorvo’s operating margin decreased by 20.3 percentage points over the last five years. Qorvo’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was 7.3%.

3. Free Cash Flow Margin Dropping

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

As you can see below, Qorvo’s margin dropped by 11.1 percentage points over the last five years. Continued declines could signal it is in the middle of an investment cycle. Qorvo’s free cash flow margin for the trailing 12 months was 14.6%.

Final Judgment

Qorvo falls short of our quality standards. With its shares trailing the market in recent months, the stock trades at 13.3× forward P/E (or $84.98 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle.

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