Marvell Technology (MRVL - Free Report) closed at $34.98 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.27%.
Prior to today's trading, shares of the chipmaker had gained 6.02% over the past month. This has lagged the Computer and Technology sector's gain of 7.86% and the S&P 500's gain of 7.76% in that time.
Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. The company is expected to report EPS of $0.20, up 25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $720.50 million, up 9.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.92 per share and revenue of $3.01 billion, which would represent changes of +39.39% and +11.61%, respectively, from the prior year.
Any recent changes to analyst estimates for MRVL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MRVL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 38.5. For comparison, its industry has an average Forward P/E of 31.04, which means MRVL is trading at a premium to the group.
Investors should also note that MRVL has a PEG ratio of 1.69 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRVL's industry had an average PEG ratio of 3.51 as of yesterday's close.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.