Marvell Technology (MRVL) Outpaces Stock Market Gains: What You Should Know
Marvell Technology (MRVL) closed at $72.42 in the latest trading session, marking a +1.43% move from the prior day. This move outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.28%.
Heading into today, shares of the chipmaker had lost 20.16% over the past month, lagging the Business Services sector's loss of 8.04% and the S&P 500's loss of 5.29% in that time.
Wall Street will be looking for positivity from Marvell Technology as it approaches its next earnings report date. In that report, analysts expect Marvell Technology to post earnings of $0.38 per share. This would mark year-over-year growth of 31.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 65.61% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Marvell Technology. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Marvell Technology is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Marvell Technology has a Forward P/E ratio of 46.16 right now. This represents a premium compared to its industry's average Forward P/E of 22.45.
Meanwhile, MRVL's PEG ratio is currently 1.9. 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. The Technology Services was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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