In the latest trading session, Marvell Technology (MRVL) closed at $75.54, marking a -3.97% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 1.43%.
Prior to today's trading, shares of the chipmaker had lost 12.82% lagged the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The upcoming earnings release of Marvell Technology will be of great interest to investors. The company is forecasted to report an EPS of $0.79, showcasing a 31.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.21 billion, indicating a 21.4% increase compared to the same quarter of the previous 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 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marvell Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Marvell Technology boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 21.95. For comparison, its industry has an average Forward P/E of 37.52, which means Marvell Technology is trading at a discount to the group.
Meanwhile, MRVL's PEG ratio is currently 0.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.02.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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