Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Marvell Technology (MRVL) closed at $47.18, marking a -0.72% move from the previous day. This change lagged the S&P 500's 0.36% loss on the day.
Coming into today, shares of the chipmaker had gained 6.1% in the past month. In that same time, the Business Services sector lost 0.97%, while the S&P 500 gained 0.75%.
Investors will be hoping for strength from MRVL as it approaches its next earnings release, which is expected to be June 7, 2021. The company is expected to report EPS of $0.27, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $803.02 million, up 15.77% from the prior-year quarter.
MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.37 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +48.91% and +18.87%, respectively.
Investors should also note any recent changes to analyst estimates for MRVL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.37% higher within the past month. MRVL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MRVL is holding a Forward P/E ratio of 34.57. This represents a premium compared to its industry's average Forward P/E of 32.94.
We can also see that MRVL currently has a PEG ratio of 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Technology Services stocks are, on average, holding a PEG ratio of 2.87 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
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