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Marvell Technology (MRVL) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Marvell Technology (MRVL - Free Report) closed at $65.04, marking a -1.89% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.

The chipmaker's stock has dropped by 5.45% in the past month, falling short of the Business Services sector's gain of 6.58% and the S&P 500's gain of 3.56%.

Market participants will be closely following the financial results of Marvell Technology in its upcoming release. The company plans to announce its earnings on March 7, 2024. The company is predicted to post an EPS of $0.46, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.42 billion, showing a 0.03% drop compared to the year-ago quarter.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Marvell Technology currently has a Zacks Rank of #2 (Buy).

Investors should also note Marvell Technology's current valuation metrics, including its Forward P/E ratio of 33.47. For comparison, its industry has an average Forward P/E of 25.92, which means Marvell Technology is trading at a premium to the group.

One should further note that MRVL currently holds a PEG ratio of 4.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.59.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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