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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 close session, Marvell Technology (MRVL - Free Report) was down 2.18% at $81.24. The stock's performance was behind the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.

Shares of the chipmaker have depreciated by 1.21% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.62%, and the S&P 500's gain of 2.06%.

The upcoming earnings release of Marvell Technology will be of great interest to investors. On that day, Marvell Technology is projected to report earnings of $0.79 per share, which would represent year-over-year growth of 31.67%. Simultaneously, our latest consensus estimate expects the revenue to be $2.21 billion, showing a 21.39% escalation compared to the year-ago quarter.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $8.18 billion. These results would represent year-over-year changes of +80.89% and +41.87%, respectively.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Marvell Technology is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 29.22. Its industry sports an average Forward P/E of 36.54, so one might conclude that Marvell Technology is trading at a discount comparatively.

One should further note that MRVL currently holds a PEG ratio of 0.62. 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. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.97.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% 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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