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Marvell Technology (MRVL) Gains But Lags Market: What You Should Know

Zacks Equity Research

Marvell Technology (MRVL) closed at $27.43 in the latest trading session, marking a +1.11% move from the prior day. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 1.51%, and the tech-heavy Nasdaq gained 1.11%.

Coming into today, shares of the chipmaker had gained 17.04% in the past month. In that same time, the Computer and Technology sector gained 13.35%, while the S&P 500 gained 16.09%.

Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. On that day, MRVL is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $676.13 million, up 2.06% from the year-ago period.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $0.86 per share and revenue of $2.97 billion. These results would represent year-over-year changes of +30.3% and +10.01%, respectively.

Investors might also notice recent changes to analyst estimates for MRVL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.37% lower within the past month. MRVL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note MRVL's current valuation metrics, including its Forward P/E ratio of 31.55. For comparison, its industry has an average Forward P/E of 28.64, which means MRVL is trading at a premium to the group.

Investors should also note that MRVL has a PEG ratio of 1.68 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. The Semiconductor - Communications industry currently had an average PEG ratio of 1.71 as of yesterday's close.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.

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


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