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Marvell Technology (MRVL) Gains But Lags Market: What You Should Know

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In the latest trading session, Marvell Technology (MRVL - Free Report) closed at $49.26, marking a +0.86% move from the previous day. The stock lagged the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 0.99%.

Heading into today, shares of the chipmaker had lost 8.71% over the past month, lagging the Computer and Technology sector's gain of 1.21% and the S&P 500's gain of 1.2% in that time.

Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. This is expected to be March 3, 2021. The company is expected to report EPS of $0.29, up 70.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $786.17 million, up 9.55% from the year-ago period.

Any recent changes to analyst estimates for MRVL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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 remained stagnant. MRVL currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that MRVL has a Forward P/E ratio of 36.6 right now. Its industry sports an average Forward P/E of 36.6, so we one might conclude that MRVL is trading at a no noticeable deviation comparatively.

Meanwhile, MRVL's PEG ratio is currently 1.88. 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. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 3.28 based on yesterday's closing prices.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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