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Marvell Technology (MRVL) Surpasses Market Returns: Some Facts Worth Knowing

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Marvell Technology (MRVL - Free Report) closed the latest trading day at $55.50, indicating a +1.5% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.46%.

Shares of the chipmaker witnessed a gain of 10.49% over the previous month, beating the performance of the Business Services sector with its gain of 8.5% and the S&P 500's gain of 7.62%.

The upcoming earnings release of Marvell Technology will be of great interest to investors. The company's earnings report is expected on November 30, 2023. The company's upcoming EPS is projected at $0.40, signifying a 29.82% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.4 billion, down 8.86% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.53 per share and revenue of $5.52 billion. These totals would mark changes of -27.83% and -6.67%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, Marvell Technology possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 35.71. This expresses a premium compared to the average Forward P/E of 24.75 of its industry.

Meanwhile, MRVL's PEG ratio is currently 3.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services industry had an average PEG ratio of 1.47 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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