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Marvell Technology (MRVL) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

In the latest trading session, Marvell Technology (MRVL) closed at $38.31, marking a +0.49% move from the previous day. This change lagged the S&P 500's 1.05% gain on the day. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 0.66%.

Heading into today, shares of the chipmaker had gained 14.41% over the past month, outpacing the Computer and Technology sector's gain of 6.34% and the S&P 500's loss of 1.56% in that time.

Investors will be hoping for strength from MRVL as it approaches its next earnings release. The company is expected to report EPS of $0.20, up 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $720.50 million, up 9.74% from the prior-year quarter.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $0.92 per share and revenue of $3.01 billion. These results would represent year-over-year changes of +39.39% and +11.61%, respectively.

It is also important to note the recent changes to analyst estimates for MRVL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. MRVL is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, MRVL currently has a Forward P/E ratio of 41.25. This represents a premium compared to its industry's average Forward P/E of 31.37.

Investors should also note that MRVL has a PEG ratio of 8.25 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 5.33 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 47, putting it in the top 19% 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.

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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