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Marvell Technology (MRVL) Surpasses Market Returns: Some Facts Worth Knowing

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Marvell Technology (MRVL - Free Report) closed the most recent trading day at $240.42, moving +1.4% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.

Shares of the chipmaker witnessed a loss of 7.88% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.28%, and the S&P 500's gain of 0.67%.

Market participants will be closely following the financial results of Marvell Technology in its upcoming release. In that report, analysts expect Marvell Technology to post earnings of $1.1 per share. This would mark year-over-year growth of 44.74%. 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.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.21 per share and revenue of $12.05 billion, which would represent changes of +48.24% and +47.01%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Marvell Technology currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 56.27. This signifies a premium in comparison to the average Forward P/E of 32.3 for its industry.

Investors should also note that MRVL has a PEG ratio of 5.12 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry had an average PEG ratio of 1.11 as trading concluded yesterday.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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