Marvell Technology (MRVL) closed at $43.68 in the latest trading session, marking a +1.77% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the chipmaker had gained 5.69% in the past month. In that same time, the Business Services sector gained 7.52%, while the S&P 500 gained 6.89%.
Wall Street will be looking for positivity from Marvell Technology as it approaches its next earnings report date. This is expected to be December 1, 2022. In that report, analysts expect Marvell Technology to post earnings of $0.59 per share. This would mark year-over-year growth of 37.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 28.63% from the year-ago period.
MRVL's full-year Zacks Consensus Estimates are calling for earnings of $2.24 per share and revenue of $6.14 billion. These results would represent year-over-year changes of +42.68% and +37.56%, respectively.
Investors should also note any recent changes to analyst estimates for Marvell Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. Marvell Technology currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 19.17. This valuation marks a discount compared to its industry's average Forward P/E of 21.58.
We can also see that MRVL currently has a PEG ratio of 1.41. 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 1.72 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 124, which puts it in the top 50% 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.
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