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

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In the latest trading session, Marvell Technology (MRVL - Free Report) closed at $54.28, marking a -1.33% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq gained 0.34%.

Prior to today's trading, shares of the chipmaker had lost 12.6% over the past month. This has lagged the Business Services sector's loss of 11.73% and the S&P 500's loss of 10.53% in that time.

Wall Street will be looking for positivity from Marvell Technology as it approaches its next earnings report date. This is expected to be May 26, 2022. In that report, analysts expect Marvell Technology to post earnings of $0.51 per share. This would mark year-over-year growth of 75.86%. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 71.43% from the year-ago period.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $2.29 per share and revenue of $6.15 billion. These results would represent year-over-year changes of +45.86% and +37.74%, respectively.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 has moved 0.05% higher. Marvell Technology is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 24.05. Its industry sports an average Forward P/E of 19.71, so we one might conclude that Marvell Technology is trading at a premium comparatively.

Also, we should mention that MRVL has a PEG ratio of 1.37. 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. The Technology Services was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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