In the latest trading session, Marvell Technology (MRVL) closed at $26.50, marking a +1.53% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the chipmaker had gained 1.83% over the past month. This has lagged the Computer and Technology sector's gain of 7.47% and the S&P 500's gain of 4.56% in that time.
MRVL will be looking to display strength as it nears its next earnings release. On that day, MRVL is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 36%. Our most recent consensus estimate is calling for quarterly revenue of $711.16 million, down 4.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.65 per share and revenue of $2.69 billion. These totals would mark changes of -45.38% and -6.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MRVL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MRVL is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, MRVL currently has a Forward P/E ratio of 40.21. For comparison, its industry has an average Forward P/E of 38.23, which means MRVL is trading at a premium to the group.
Also, we should mention that MRVL has a PEG ratio of 5.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 3.32 based on yesterday's closing prices.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% 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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