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Marvell Technology (MRVL) Increases Despite Market Slip: Here's What You Need to Know

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The latest trading session saw Marvell Technology (MRVL - Free Report) ending at $69.02, denoting a +0.8% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.29%.

Heading into today, shares of the chipmaker had lost 2.41% over the past month, lagging the Business Services sector's loss of 0.67% and the S&P 500's gain of 1.29% in that time.

The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. The company is scheduled to release its earnings on May 30, 2024. The company's earnings per share (EPS) are projected to be $0.23, reflecting a 25.81% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, down 12.9% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.35 per share and a revenue of $5.26 billion, indicating changes of -10.6% and -4.56%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Marvell Technology. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Marvell Technology boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 50.67. This indicates a premium in contrast to its industry's Forward P/E of 24.82.

It is also worth noting that MRVL currently has a PEG ratio of 2.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.54.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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