Marvell Technology (MRVL) Gains As Market Dips: What You Should Know
Marvell Technology (MRVL) closed at $17.33 in the latest trading session, marking a +1.29% move from the prior day. This move outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.21%.
Heading into today, shares of the chipmaker had gained 9.33% over the past month, outpacing the Computer and Technology sector's loss of 1.41% and the S&P 500's loss of 1.4% in that time.
Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. This is expected to be March 14, 2019. The company is expected to report EPS of $0.32, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $810.63 million, up 31.72% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $2.93 billion. These totals would mark changes of +5.04% and +21.35%, respectively, from last year.
It is also important to note the 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.
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.
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 remained stagnant. MRVL is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that MRVL has a Forward P/E ratio of 13.72 right now. For comparison, its industry has an average Forward P/E of 13.72, which means MRVL is trading at a no noticeable deviation to the group.
Meanwhile, MRVL's PEG ratio is currently 1.46. 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. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 2.68 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 15, putting it in the top 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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