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Marvell Technology (MRVL) Rises Higher Than Market: Key Facts

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Marvell Technology (MRVL - Free Report) closed at $68.96 in the latest trading session, marking a +1.22% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.96%. On the other hand, the Dow registered a gain of 0.4%, and the technology-centric Nasdaq increased by 1.3%.

The the stock of chipmaker has risen by 3.98% in the past month, lagging the Business Services sector's gain of 5.87% and overreaching the S&P 500's gain of 3.69%.

The investment community will be paying close attention to the earnings performance of Marvell Technology in its upcoming release. The company is slated to reveal its earnings on March 7, 2024. In that report, analysts expect Marvell Technology to post earnings of $0.46 per share. This would mark no growth from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.42 billion, indicating a 0.03% decrease compared to the same quarter of the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Marvell Technology. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Marvell Technology is currently a Zacks Rank #3 (Hold).

In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 34.41. This valuation marks a premium compared to its industry's average Forward P/E of 24.12.

It is also worth noting that MRVL currently has a PEG ratio of 4.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Technology Services industry stood at 1.52 at the close of the market yesterday.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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