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Marvell Technology (MRVL) Stock Slides as Market Rises: Facts to Know Before You Trade

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Marvell Technology (MRVL - Free Report) ended the recent trading session at $85.82, demonstrating a -2.42% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.

Shares of the chipmaker have appreciated by 18.43% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.68%, and the S&P 500's gain of 1.08%.

The investment community will be paying close attention to the earnings performance of Marvell Technology in its upcoming release. The company is forecasted to report an EPS of $0.74, showcasing a 72.09% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.06 billion, indicating a 35.94% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $2.8 per share and a revenue of $8.13 billion, demonstrating changes of +78.34% and +40.97%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Marvell Technology. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Marvell Technology presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 31.39. For comparison, its industry has an average Forward P/E of 38.29, which means Marvell Technology is trading at a discount to the group.

Also, we should mention that MRVL has a PEG ratio of 0.82. 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 Electronics - Semiconductors industry held an average PEG ratio of 1.93.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% 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.

To follow MRVL in the coming trading sessions, be sure to utilize Zacks.com.


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