Marvell Technology (MRVL) Gains As Market Dips: What You Should Know
Marvell Technology (MRVL) closed the most recent trading day at $48.62, moving +0.83% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the chipmaker had gained 4.74% over the past month, outpacing the Business Services sector's gain of 2.48% and the S&P 500's gain of 2.02% in that time.
Investors will be hoping for strength from Marvell Technology as it approaches its next earnings release. On that day, Marvell Technology is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 64.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.51 billion, up 40.78% from the year-ago period.
MRVL's full-year Zacks Consensus Estimates are calling for earnings of $2.33 per share and revenue of $6.19 billion. These results would represent year-over-year changes of +48.41% and +38.61%, respectively.
It is also important to note the recent changes to analyst estimates for Marvell Technology. 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.
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 remained stagnant. Marvell Technology is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 20.72. This represents a discount compared to its industry's average Forward P/E of 21.61.
Meanwhile, MRVL's PEG ratio is currently 1.35. 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. The Technology Services industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.
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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