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Why Marvell Technology (MRVL) Dipped More Than Broader Market Today
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Marvell Technology (MRVL - Free Report) closed at $245.28 in the latest trading session, marking a -8.72% move from the prior day. This move lagged the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
The stock of chipmaker has risen by 21.21% in the past month, leading the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Marvell Technology will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.1, reflecting a 44.74% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.16 billion, reflecting a 52.17% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.21 per share and revenue of $12.05 billion, indicating changes of +48.24% and +47.01%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Marvell Technology presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Marvell Technology is at present trading with a Forward P/E ratio of 63.78. This signifies a premium in comparison to the average Forward P/E of 36.3 for its industry.
One should further note that MRVL currently holds a PEG ratio of 5.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.19.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Why Marvell Technology (MRVL) Dipped More Than Broader Market Today
Marvell Technology (MRVL - Free Report) closed at $245.28 in the latest trading session, marking a -8.72% move from the prior day. This move lagged the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
The stock of chipmaker has risen by 21.21% in the past month, leading the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Marvell Technology will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.1, reflecting a 44.74% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.16 billion, reflecting a 52.17% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.21 per share and revenue of $12.05 billion, indicating changes of +48.24% and +47.01%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Marvell Technology presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Marvell Technology is at present trading with a Forward P/E ratio of 63.78. This signifies a premium in comparison to the average Forward P/E of 36.3 for its industry.
One should further note that MRVL currently holds a PEG ratio of 5.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.19.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.