Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know
Marvell Technology (MRVL) closed at $52.39 in the latest trading session, marking a -0.29% move from the prior day. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.26%.
Heading into today, shares of the chipmaker had lost 17% over the past month, lagging the Business Services sector's loss of 15.01% and the S&P 500's loss of 10.72% in that time.
Wall Street will be looking for positivity from Marvell Technology as it approaches its next earnings report date. This is expected to be May 26, 2022. In that report, analysts expect Marvell Technology to post earnings of $0.51 per share. This would mark year-over-year growth of 75.86%. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 71.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $6.15 billion. These totals would mark changes of +42.04% and +37.74%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Marvell Technology. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. Marvell Technology is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Marvell Technology's current valuation metrics, including its Forward P/E ratio of 23.57. For comparison, its industry has an average Forward P/E of 19.6, which means Marvell Technology is trading at a premium to the group.
Also, we should mention that MRVL has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.73 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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