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

Zacks Equity Research

Marvell Technology (MRVL) closed the most recent trading day at $25.15, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 0.56% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.01%.

Prior to today's trading, shares of the chipmaker had lost 0.96% over the past month. This has lagged the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 1.38% in that time.

Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. On that day, MRVL is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 48.48%. Meanwhile, our latest consensus estimate is calling for revenue of $660.23 million, down 22.42% from the prior-year quarter.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $0.70 per share and revenue of $2.68 billion. These results would represent year-over-year changes of -41.18% and -6.41%, respectively.

Any recent changes to analyst estimates for MRVL should also be noted by investors. These revisions help to show the ever-changing nature of near-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.

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. Within the past 30 days, our consensus EPS projection has moved 2.58% lower. MRVL is currently a Zacks Rank #3 (Hold).

Digging into valuation, MRVL currently has a Forward P/E ratio of 35.53. For comparison, its industry has an average Forward P/E of 28.33, which means MRVL is trading at a premium to the group.

Investors should also note that MRVL has a PEG ratio of 5.74 right now. 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. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 4.99 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 63, putting it in the top 25% 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.

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

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