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

Marvell Technology (MRVL) closed at $36.01 in the latest trading session, marking a -0.85% move from the prior day. This change lagged the S&P 500’s daily gain of 0.58%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.24%.

Prior to today’s trading, shares of the chipmaker had gained 5.7% over the past month. This has lagged the Computer and Technology sector’s gain of 7.08% and outpaced the S&P 500’s gain of 5.34% in that time.

Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. The company is expected to report EPS of $0.20, up 25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $720.50 million, up 9.74% from the year-ago period.

MRVL’s full-year Zacks Consensus Estimates are calling for earnings of $0.92 per share and revenue of $3.01 billion. These results would represent year-over-year changes of +39.39% and +11.61%, respectively.

Any recent changes to analyst estimates for MRVL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

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.

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. MRVL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note MRVL’s current valuation metrics, including its Forward P/E ratio of 39.3. This valuation marks a premium compared to its industry’s average Forward P/E of 30.91.

We can also see that MRVL currently has a PEG ratio of 1.73. 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 3.64 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 27, putting it in the top 11% 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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