Back to top

Image: Bigstock

Marvell Technology (MRVL) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Marvell Technology (MRVL - Free Report) closed the most recent trading day at $45.11, moving +0.02% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.73%, and the Nasdaq, a tech-heavy index, lost 4.59%.

Heading into today, shares of the chipmaker had gained 17.39% over the past month, outpacing the Business Services sector's gain of 6.5% and the S&P 500's gain of 5.83% in that time.

Marvell Technology will be looking to display strength as it nears its next earnings release, which is expected to be March 2, 2023. On that day, Marvell Technology is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.4 billion, up 4.26% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Marvell Technology. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Marvell Technology currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Marvell Technology has a Forward P/E ratio of 22.36 right now. For comparison, its industry has an average Forward P/E of 22.58, which means Marvell Technology is trading at a discount to the group.

Investors should also note that MRVL has a PEG ratio of 2.05 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MRVL's industry had an average PEG ratio of 2.32 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marvell Technology, Inc. (MRVL) - free report >>

Published in