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Marvell Technology (MRVL) Gains As Market Dips: What You Should Know

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In the latest trading session, Marvell Technology (MRVL - Free Report) closed at $26.36, marking a +0.92% move from the previous day. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.24%.

Heading into today, shares of the chipmaker had gained 8.74% over the past month, outpacing the Computer and Technology sector's gain of 6.28% and the S&P 500's gain of 4.72% in that time.

Investors will be hoping for strength from MRVL as it approaches its next earnings release, which is expected to be December 3, 2019. In that report, analysts expect MRVL to post earnings of $0.17 per share. This would mark a year-over-year decline of 48.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $660.23 million, down 22.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.70 per share and revenue of $2.68 billion, which would represent changes of -41.18% and -6.41%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MRVL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 a Zacks Rank #3 (Hold).

In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 37.49. Its industry sports an average Forward P/E of 37.49, so we one might conclude that MRVL is trading at a no noticeable deviation comparatively.

Also, we should mention that MRVL has a PEG ratio of 6.05. 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. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 4.94 based on yesterday's closing prices.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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