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Marvell Technology (MRVL) Outpaces Stock Market Gains: What You Should Know

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Marvell Technology (MRVL - Free Report) closed the most recent trading day at $19.40, moving +1.84% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 1.49%, and the Nasdaq, a tech-heavy index, added 1.46%.

Prior to today's trading, shares of the chipmaker had gained 11.8% over the past month. This has outpaced the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 4.57% in that time.

Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. This is expected to be March 7, 2019. On that day, MRVL is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 18.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $739.88 million, up 20.22% from the year-ago period.

Investors might also notice recent changes to analyst estimates for MRVL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MRVL is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that MRVL has a Forward P/E ratio of 15.12 right now. Its industry sports an average Forward P/E of 18.45, so we one might conclude that MRVL is trading at a discount comparatively.

Meanwhile, MRVL's PEG ratio is currently 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MRVL's industry had an average PEG ratio of 2.91 as of yesterday's close.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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