Marvell Technology (MRVL) closed at $27.37 in the latest trading session, marking a -0.76% move from the prior day. This change was narrower than the S&P 500’s 1.05% loss on the day. Elsewhere, the Dow lost 1.59%, while the tech-heavy Nasdaq lost 0.54%.
Wall Street will be looking for positivity from MRVL as it approaches its next earnings report date. In that report, analysts expect MRVL to post earnings of $0.14 per share. This would mark a year-over-year decline of 12.5%. Meanwhile, our latest consensus estimate is calling for revenue of $676.13 million, up 2.06% from the prior-year quarter.
MRVL’s full-year Zacks Consensus Estimates are calling for earnings of $0.85 per share and revenue of $2.96 billion. These results would represent year-over-year changes of +28.79% and +9.58%, respectively.
Investors should also note any recent changes to analyst estimates for MRVL. These revisions help to show the ever-changing nature of near-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. 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.
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 2.17% lower. MRVL is currently a Zacks Rank #3 (Hold).
Investors should also note MRVL’s current valuation metrics, including its Forward P/E ratio of 32.38. For comparison, its industry has an average Forward P/E of 28.13, which means MRVL is trading at a premium to the group.
Meanwhile, MRVL’s PEG ratio is currently 1.72. 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. Semiconductor – Communications stocks are, on average, holding a PEG ratio of 1.72 based on yesterday’s closing prices.
The Semiconductor – Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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