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Why Marvell Technology (MRVL) Outpaced the Stock Market Today

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Marvell Technology (MRVL - Free Report) closed the latest trading day at $53.66, indicating a +1.98% change from the previous session's end. This change outpaced the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.

Shares of the chipmaker have depreciated by 3.43% over the course of the past month, outperforming the Business Services sector's loss of 3.86% and lagging the S&P 500's loss of 3%.

The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. The company is expected to report EPS of $0.40, down 29.82% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.4 billion, indicating an 8.85% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.53 per share and a revenue of $5.52 billion, indicating changes of -27.83% and -6.67%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marvell Technology. 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Marvell Technology possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 34.34. This represents a premium compared to its industry's average Forward P/E of 23.18.

Also, we should mention that MRVL has a PEG ratio of 3.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MRVL's industry had an average PEG ratio of 1.41 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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


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