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Marvell Technology (MRVL) Gains But Lags Market: What You Should Know

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In the latest trading session, Marvell Technology (MRVL) closed at $24.15, marking a +0.54% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 1.13%.

Heading into today, shares of the chipmaker had lost 7.97% over the past month, lagging the Computer and Technology sector's gain of 5.28% and the S&P 500's gain of 2.95% 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 4, 2020. On that day, MRVL is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 36%. Our most recent consensus estimate is calling for quarterly revenue of $711.16 million, down 4.52% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MRVL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MRVL is currently a Zacks Rank #4 (Sell).

Digging into valuation, MRVL currently has a Forward P/E ratio of 25.98. For comparison, its industry has an average Forward P/E of 25.98, which means MRVL is trading at a no noticeable deviation to the group.

Also, we should mention that MRVL has a PEG ratio of 3.42. 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. The Semiconductor - Communications was holding an average PEG ratio of 3.25 at yesterday's closing price.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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