Marvell Technology (MRVL) Gains As Market Dips: What You Should Know
Marvell Technology (MRVL) closed the most recent trading day at $60.59, moving +0.13% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.18%.
Prior to today's trading, shares of the chipmaker had gained 5.38% over the past month. This has outpaced the Business Services sector's loss of 0.48% and the S&P 500's gain of 2.44% in that time.
MRVL will be looking to display strength as it nears its next earnings release. In that report, analysts expect MRVL to post earnings of $0.31 per share. This would mark year-over-year growth of 47.62%. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, up 46.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $4.24 billion. These totals would mark changes of +52.17% and +42.9%, respectively, from last year.
Any recent changes to analyst estimates for MRVL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. MRVL is currently a Zacks Rank #4 (Sell).
In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 43.15. This valuation marks a premium compared to its industry's average Forward P/E of 32.54.
Also, we should mention that MRVL has a PEG ratio of 2.1. 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. MRVL's industry had an average PEG ratio of 2.51 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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