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Marvell Technology (MRVL) Outpaces Stock Market Gains: What You Should Know

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Marvell Technology (MRVL) closed the most recent trading day at $53.77, moving +1.47% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the chipmaker had gained 19.56% in the past month. In that same time, the Business Services sector gained 3.7%, while the S&P 500 gained 3.2%.

Marvell Technology will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, up 64.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.51 billion, up 40.78% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.33 per share and revenue of $6.19 billion. These totals would mark changes of +48.41% and +38.61%, respectively, from last year.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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 a Zacks Rank #4 (Sell).

Digging into valuation, Marvell Technology currently has a Forward P/E ratio of 22.77. This represents a discount compared to its industry's average Forward P/E of 25.51.

Investors should also note that MRVL has a PEG ratio of 1.49 right now. 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. MRVL's industry had an average PEG ratio of 2.11 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 126, which puts it in the top 50% 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.

To follow MRVL in the coming trading sessions, be sure to utilize Zacks.com.


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