In the latest trading session, Marvell Technology (MRVL) closed at $71.99, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq lost 0.39%.
The chipmaker's stock has climbed by 3.22% in the past month, falling short of the Computer and Technology sector's gain of 9.6% and the S&P 500's gain of 5.88%.
The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. In that report, analysts expect Marvell Technology to post earnings of $0.67 per share. This would mark year-over-year growth of 123.33%. Simultaneously, our latest consensus estimate expects the revenue to be $2.01 billion, showing a 57.89% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.79 per share and revenue of $8.22 billion, indicating changes of +77.71% and +42.61%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Marvell Technology boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 26.16. For comparison, its industry has an average Forward P/E of 27.9, which means Marvell Technology is trading at a discount to the group.
Also, we should mention that MRVL has a PEG ratio of 0.61. 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 average PEG ratio for the Electronics - Semiconductors industry stood at 1.63 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marvell Technology, Inc. (MRVL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
