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Marvell Technology (MRVL) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Marvell Technology (MRVL - Free Report) closed at $235.81, marking a -3.07% move from the previous day. This move lagged the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.
Shares of the chipmaker have depreciated by 13.34% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.85%, and the S&P 500's gain of 2.2%.
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 $0.93, showcasing a 38.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.71 billion, up 35.1% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.04 per share and a revenue of $11.54 billion, indicating changes of +42.25% and +40.88%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marvell Technology. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% decrease. Marvell Technology is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Marvell Technology is presently trading at a Forward P/E ratio of 60.16. For comparison, its industry has an average Forward P/E of 49.7, which means Marvell Technology is trading at a premium to the group.
It's also important to note that MRVL currently trades at a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.89.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
View the Zacks #1 Rank List
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Marvell Technology (MRVL) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Marvell Technology (MRVL - Free Report) closed at $235.81, marking a -3.07% move from the previous day. This move lagged the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.
Shares of the chipmaker have depreciated by 13.34% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.85%, and the S&P 500's gain of 2.2%.
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 $0.93, showcasing a 38.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.71 billion, up 35.1% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.04 per share and a revenue of $11.54 billion, indicating changes of +42.25% and +40.88%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marvell Technology. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% decrease. Marvell Technology is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Marvell Technology is presently trading at a Forward P/E ratio of 60.16. For comparison, its industry has an average Forward P/E of 49.7, which means Marvell Technology is trading at a premium to the group.
It's also important to note that MRVL currently trades at a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.89.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.