Shares of Qorvo rocketed 20% higher last week after the company delivered a 22-cents-a-share earnings beat on a $1.30 a share basis. The company said sales to Apple (AAPL) , which account for 30% of its business, were strong on the heels of the iPhone 11, and 5G wireless rollout is moving ahead faster than expected.
Cramer said with a strong buyback and shares still trading at 15.5 times earnings, QRVO is a buy, even after this week's big run.
In this daily bar chart of QRVO, below, we can see that prices had been trading higher from a low in May. The rally was interrupted by short and frequent corrections but trading volume did not expand on the dips so the overall pattern was one of strengths.
The On-Balance-Volume (OBV) line saw-toothed higher from the May low and signaled that buyers of QRVO have been more aggressive with heavier volume being transacted on days when the stock closed higher.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish with its rise above the zero line in early July and it has stayed bullish.
In this weekly bar chart of QRVO, below, we can see that the rally in QRVO took prices well above the highs of 2018. Prices are clearly above the rising 40-week moving average line.
The weekly OBV line shows a bullish rise from early June telling us that there was a fair amount of accumulation before the recent breakout.
The weekly MACD oscillator moved above the zero line in July for an outright go long signal.
In this Point and Figure chart of QRVO, below, we used weekly close only price data to construct the chart. A potential long-term price target of $114 is being projected.
Bottom line strategy: Agressive traders could use any dip under $100 to go long QRVO, risking a close below $95. The $114 area is our first price target.