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Marvell Technology (MRVL) Laps the Stock Market: Here's Why
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Marvell Technology (MRVL - Free Report) ended the recent trading session at $69.82, demonstrating a +1.91% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 1.19%.
Prior to today's trading, shares of the chipmaker had lost 5.7% over the past month. This has lagged the Business Services sector's loss of 3.42% and the S&P 500's loss of 1.57% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. On that day, Marvell Technology is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 25.81%. In the meantime, our current consensus estimate forecasts the revenue to be $1.15 billion, indicating a 12.9% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.35 per share and revenue of $5.26 billion, indicating changes of -10.6% and -4.56%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 moved 0.33% higher. Currently, Marvell Technology is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 50.69. This expresses a premium compared to the average Forward P/E of 23.12 of its industry.
We can also see that MRVL currently has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Marvell Technology (MRVL) Laps the Stock Market: Here's Why
Marvell Technology (MRVL - Free Report) ended the recent trading session at $69.82, demonstrating a +1.91% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 1.19%.
Prior to today's trading, shares of the chipmaker had lost 5.7% over the past month. This has lagged the Business Services sector's loss of 3.42% and the S&P 500's loss of 1.57% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. On that day, Marvell Technology is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 25.81%. In the meantime, our current consensus estimate forecasts the revenue to be $1.15 billion, indicating a 12.9% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.35 per share and revenue of $5.26 billion, indicating changes of -10.6% and -4.56%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 moved 0.33% higher. Currently, Marvell Technology is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 50.69. This expresses a premium compared to the average Forward P/E of 23.12 of its industry.
We can also see that MRVL currently has a PEG ratio of 2.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.