Marvell Technology (MRVL) closed at $67.70 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the chipmaker had lost 23.83% over the past month, outpacing the Business Services sector's loss of 25.71% and lagging the S&P 500's loss of 7.66% in that time.
Investors will be hoping for strength from Marvell Technology as it approaches its next earnings release. The company is expected to report EPS of $0.48, up 65.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 65.61% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Marvell Technology is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 43.33. Its industry sports an average Forward P/E of 21.61, so we one might conclude that Marvell Technology is trading at a premium comparatively.
Investors should also note that MRVL has a PEG ratio of 1.79 right now. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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