Marvell Technology (MRVL) closed at $80.38 in the latest trading session, marking a -1.02% move from the prior day. This change lagged the S&P 500's 0.26% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the chipmaker had lost 0.6% lagged the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.79, reflecting a 31.67% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.21 billion, indicating a 21.39% growth compared to the corresponding quarter of the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 28.57. This denotes a discount relative to the industry average Forward P/E of 36.84.
One should further note that MRVL currently holds a PEG ratio of 0.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% 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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