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Marvell Technology (MRVL) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 min read

Marvell Technology (MRVL) closed the most recent trading day at $43.09, moving +0.29% from the previous trading session. This change outpaced the S&P 500's 1.16% loss on the day. Meanwhile, the Dow lost 1.16%, and the Nasdaq, a tech-heavy index, lost 0.82%.

Heading into today, shares of the chipmaker had gained 3.23% over the past month, outpacing the Computer and Technology sector's gain of 2.54% and lagging the S&P 500's gain of 3.87% in that time.

Investors will be hoping for strength from MRVL as it approaches its next earnings release, which is expected to be December 3, 2020. On that day, MRVL is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 47.06%. Meanwhile, our latest consensus estimate is calling for revenue of $750.38 million, up 13.27% from the prior-year quarter.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $0.92 per share and revenue of $2.96 billion. These results would represent year-over-year changes of +39.39% and +9.61%, respectively.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. 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 46.62. This valuation marks a premium compared to its industry's average Forward P/E of 37.87.

It is also worth noting that MRVL currently has a PEG ratio of 2.17. 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 4.78 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 72, putting it in the top 29% 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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