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Marvell Technology (MRVL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Marvell Technology (MRVL) closed the latest trading day at $65.24, indicating a -1.87% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow saw an upswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.52%.

The chipmaker's shares have seen an increase of 1.43% over the last month, surpassing the Business Services sector's loss of 4.96% and the S&P 500's loss of 1.66%.

The upcoming earnings release of Marvell Technology will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.23, reflecting a 25.81% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, down 12.9% from the year-ago period.

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.


Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 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).

From a valuation perspective, Marvell Technology is currently exchanging hands at a Forward P/E ratio of 49.19. This represents a premium compared to its industry's average Forward P/E of 22.57.

It is also worth noting that MRVL currently has a PEG ratio of 2.6. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.55.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report

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