In the latest trading session, Marvell Technology (MRVL) closed at $80.28, marking a -3.4% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.
The stock of chipmaker has fallen by 3.92% in the past month, lagging the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 0.6%.
Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. In that report, analysts expect Marvell Technology to post earnings of $0.79 per share. This would mark year-over-year growth of 31.67%. At the same time, our most recent consensus estimate is projecting a revenue of $2.21 billion, reflecting a 21.43% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $8.18 billion, which would represent changes of +80.89% and +41.88%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Marvell Technology currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 29.24. For comparison, its industry has an average Forward P/E of 36.99, which means Marvell Technology is trading at a discount to the group.
One should further note that MRVL currently holds a PEG ratio of 0.62. 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. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.03.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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