Marvell Technology (MRVL) closed the most recent trading day at $90.68, moving -1.97% from the previous trading session. This change lagged the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.52%, and the technology-centric Nasdaq decreased by 0.08%.
Shares of the chipmaker have appreciated by 37.85% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.19%, and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of Marvell Technology in its upcoming earnings disclosure. In that report, analysts expect Marvell Technology to post earnings of $0.74 per share. This would mark year-over-year growth of 72.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 35.88% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.8 per share and a revenue of $8.13 billion, indicating changes of +78.34% and +40.93%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Marvell Technology. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. Marvell Technology is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Marvell Technology is currently exchanging hands at a Forward P/E ratio of 33.03. For comparison, its industry has an average Forward P/E of 37.76, which means Marvell Technology is trading at a discount to the group.
Also, we should mention that MRVL has a PEG ratio of 0.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.01.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Marvell Technology, Inc. (MRVL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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