Marvell Technology (MRVL) ended the recent trading session at $82.77, demonstrating a +2.12% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.89%.
Coming into today, shares of the chipmaker had gained 1.2% in the past month. In that same time, the Computer and Technology sector lost 0.5%, while the S&P 500 gained 0.16%.
Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. On that day, Marvell Technology is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 72.09%. In the meantime, our current consensus estimate forecasts the revenue to be $2.06 billion, indicating a 35.94% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.8 per share and revenue of $8.11 billion. These totals would mark changes of +78.34% and +40.66%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Marvell Technology. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Marvell Technology is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Marvell Technology has a Forward P/E ratio of 28.92 right now. This signifies a discount in comparison to the average Forward P/E of 39.29 for its industry.
It's also important to note that MRVL currently trades at a PEG ratio of 0.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
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.
Be sure to follow all of these stock-moving metrics, and many 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
