Yahoo Finance Marvell Technology (MRVL) Gains But Lags Market: What You Should Know
Marvell Technology (MRVL) closed at $38.63 in the latest trading session, marking a +1.44% move from the prior day. The stock lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Coming into today, shares of the chipmaker had lost 10.82% in the past month. In that same time, the Business Services sector lost 1.34%, while the S&P 500 gained 2.19%.
Marvell Technology will be looking to display strength as it nears its next earnings release. On that day, Marvell Technology is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 44.23%. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, down 10.09% from the prior-year quarter.
MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.48 per share and revenue of $5.49 billion. These results would represent year-over-year changes of -30.19% and -7.33%, respectively.
Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 5.41% lower. Marvell Technology is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 25.76. This valuation marks a premium compared to its industry's average Forward P/E of 20.3.
It is also worth noting that MRVL currently has a PEG ratio of 7.69. 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 industry currently had an average PEG ratio of 1.61 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.
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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
