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Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Marvell Technology (MRVL) closed at $37.51 in the latest trading session, marking a -1.83% move from the prior day. This move lagged the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 2.45%.

Coming into today, shares of the chipmaker had lost 5.21% in the past month. In that same time, the Computer and Technology sector gained 0.77%, while the S&P 500 lost 0.71%.

MRVL will be looking to display strength as it nears its next earnings release. In that report, analysts expect MRVL to post earnings of $0.25 per share. This would mark year-over-year growth of 47.06%. Our most recent consensus estimate is calling for quarterly revenue of $750.38 million, up 13.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.92 per share and revenue of $2.96 billion. These totals would mark changes of +39.39% and +9.61%, respectively, from last year.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. MRVL is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MRVL has a Forward P/E ratio of 41.46 right now. For comparison, its industry has an average Forward P/E of 32.8, which means MRVL is trading at a premium to the group.

Investors should also note that MRVL has a PEG ratio of 1.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRVL's industry had an average PEG ratio of 8.55 as of yesterday's close.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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.

To follow MRVL in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research