Marvell Technology (MRVL) closed the most recent trading day at $76.89, moving -1% from the previous trading session. This move lagged the S&P 500's daily loss of 0.97%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.
Prior to today's trading, shares of the chipmaker had lost 10% over the past month. This has was narrower than the Business Services sector's loss of 18.39% and lagged the S&P 500's loss of 0.78% in that time.
Wall Street will be looking for positivity from Marvell Technology as it approaches its next earnings report date. In that report, analysts expect Marvell Technology to post earnings of $0.48 per share. This would mark year-over-year growth of 65.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 65.61% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.55 per share and revenue of $4.44 billion. These totals would mark changes of +68.48% and +49.61%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Marvell Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Marvell Technology currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Marvell Technology's current valuation metrics, including its Forward P/E ratio of 50.21. For comparison, its industry has an average Forward P/E of 22.68, which means Marvell Technology is trading at a premium to the group.
Investors should also note that MRVL has a PEG ratio of 2.07 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.49 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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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