Marvell Technology (MRVL) closed at $40.29 in the latest trading session, marking a -0.25% move from the prior day. This change lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.64%.
Coming into today, shares of the chipmaker had gained 0.07% in the past month. In that same time, the Business Services sector gained 4.55%, while the S&P 500 gained 7.71%.
Wall Street will be looking for positivity from Marvell Technology as it approaches its next earnings report date. On that day, Marvell Technology is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 44.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, down 10.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.48 per share and revenue of $5.49 billion, which would represent changes of -30.19% and -7.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 5.41% lower within the past month. Marvell Technology currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 27.32. This represents a premium compared to its industry's average Forward P/E of 21.12.
Meanwhile, MRVL's PEG ratio is currently 8.15. 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. The Technology Services was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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