Marvell Technology (MRVL) ended the recent trading session at $83.45, demonstrating a -1.41% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.44%.
The chipmaker's stock has dropped by 8.47% in the past month, falling short of the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. On that day, Marvell Technology is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 31.67%. Alongside, our most recent consensus estimate is anticipating revenue of $2.21 billion, indicating a 21.39% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.84 per share and a revenue of $8.18 billion, indicating changes of +80.89% and +41.87%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, the Zacks Consensus EPS estimate has shifted 0.14% upward. Marvell Technology currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 29.78. This represents a discount compared to its industry average Forward P/E of 34.84.
Also, we should mention that MRVL has a PEG ratio of 0.63. 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. MRVL's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 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.
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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