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Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know

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Marvell Technology (MRVL - Free Report) closed at $48.07 in the latest trading session, marking a -1.39% move from the prior day. This move lagged the S&P 500's daily loss of 0.41%.

Coming into today, shares of the chipmaker had gained 1.65% in the past month. In that same time, the Computer and Technology sector gained 9.72%, while the S&P 500 gained 5.07%.

Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. In that report, analysts expect MRVL to post earnings of $0.27 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $800.39 million, up 15.39% from the year-ago period.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.37 per share and revenue of $3.51 billion. These results would represent year-over-year changes of +48.91% and +18.35%, respectively.

It is also important to note the recent changes to analyst estimates for MRVL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MRVL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 35.56. This valuation marks a discount compared to its industry's average Forward P/E of 36.22.

Meanwhile, MRVL's PEG ratio is currently 1.82. 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. The Semiconductor - Communications industry currently had an average PEG ratio of 3.01 as of yesterday's close.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% 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.

To follow MRVL in the coming trading sessions, be sure to utilize Zacks.com.


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