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Marvell Technology (MRVL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3-min read

Marvell Technology (MRVL) closed at $50.30 in the latest trading session, marking a -1.58% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.

Investors will be hoping for strength from MRVL as it approaches its next earnings release, which is expected to be March 3, 2021. In that report, analysts expect MRVL to post earnings of $0.29 per share. This would mark year-over-year growth of 70.59%. Our most recent consensus estimate is calling for quarterly revenue of $786.17 million, up 9.55% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MRVL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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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. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. MRVL is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 37.65. For comparison, its industry has an average Forward P/E of 37.65, which means MRVL is trading at a no noticeable deviation to the group.

We can also see that MRVL currently has a PEG ratio of 1.93. 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. The Semiconductor - Communications industry currently had an average PEG ratio of 3.28 as of yesterday's close.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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 Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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Zacks Investment Research