Marvell Technology (MRVL) closed the most recent trading day at $87.59, moving -3.08% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.17%. Meanwhile, the Dow experienced a drop of 0.53%, and the technology-dominated Nasdaq saw a decrease of 2.04%.
Prior to today's trading, shares of the chipmaker had gained 1.63% lagged the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12%.
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 $0.74 per share. This would mark year-over-year growth of 72.09%. Simultaneously, our latest consensus estimate expects the revenue to be $2.06 billion, showing a 35.94% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.8 per share and a revenue of $8.11 billion, indicating changes of +78.34% and +50.89%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Right now, Marvell Technology possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 32.25. This valuation marks a discount compared to its industry average Forward P/E of 40.35.
We can also see that MRVL currently has a PEG ratio of 0.84. 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 Electronics - Semiconductors was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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