Marvell Technology (MRVL) closed at $46.80 in the latest trading session, marking a +1.89% move from the prior day. This change outpaced the S&P 500’s 0.09% loss on the day.
Heading into today, shares of the chipmaker had lost 2.96% over the past month, lagging the Computer and Technology sector’s gain of 10.43% and the S&P 500’s gain of 5.45% in that time.
MRVL will be looking to display strength as it nears its next earnings release. In that report, analysts expect MRVL to post earnings of $0.27 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $803.02 million, up 15.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.38 per share and revenue of $3.51 billion. These totals would mark changes of +50% and +18.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MRVL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.24% higher. MRVL is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 33.26. Its industry sports an average Forward P/E of 33.26, so we one might conclude that MRVL is trading at a no noticeable deviation comparatively.
It is also worth noting that MRVL currently has a PEG ratio of 1.63. 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 2.85 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 69, putting it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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