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Marvell Technology (MRVL) Stock Falls Amid Market Uptick: What Investors Need to Know

The latest trading session saw Marvell Technology (MRVL) ending at $73.30, denoting a -1.57% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.23%.

Coming into today, shares of the chipmaker had gained 18.43% in the past month. In that same time, the Business Services sector gained 5.37%, while the S&P 500 gained 7.08%.

The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. The company is scheduled to release its earnings on May 30, 2024. On that day, Marvell Technology is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 25.81%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.15 billion, indicating a 12.85% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.36 per share and a revenue of $5.27 billion, demonstrating changes of -9.93% and -4.24%, respectively, from the preceding year.

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It is also important to note the recent changes to analyst estimates for Marvell Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 1.6% higher. Marvell Technology is currently a Zacks Rank #2 (Buy).

In the context of valuation, Marvell Technology is at present trading with a Forward P/E ratio of 54.61. This indicates a premium in contrast to its industry's Forward P/E of 25.16.

Investors should also note that MRVL has a PEG ratio of 2.88 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.76.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report

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