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Marvell Technology (MRVL) Laps the Stock Market: Here's Why

The most recent trading session ended with Marvell Technology (MRVL) standing at $68.50, reflecting a +0.91% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.

The the stock of chipmaker has risen by 1.01% in the past month, leading the Business Services sector's loss of 4.2% and the S&P 500's loss of 0.9%.

The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. The company is forecasted to report an EPS of $0.23, showcasing a 25.81% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.15 billion, indicating a 12.9% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.35 per share and a revenue of $5.26 billion, indicating changes of -10.6% and -4.56%, respectively, from the former year.

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Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.27% lower. Marvell Technology presently features a Zacks Rank of #4 (Sell).

Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 50.23. Its industry sports an average Forward P/E of 23.1, so one might conclude that Marvell Technology is trading at a premium comparatively.

It is also worth noting that MRVL currently has a PEG ratio of 2.65. 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 Technology Services industry had an average PEG ratio of 1.63 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report

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