Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know
Marvell Technology (MRVL) closed the most recent trading day at $42.51, moving -0.56% from the previous trading session. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.
Coming into today, shares of the chipmaker had gained 14.95% in the past month. In that same time, the Business Services sector gained 8.22%, while the S&P 500 gained 4.64%.
Investors will be hoping for strength from Marvell Technology as it approaches its next earnings release. The company is expected to report EPS of $0.46, down 8% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.4 billion, up 4.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.12 per share and revenue of $5.9 billion. These totals would mark changes of +35.03% and +32.25%, respectively, from last year.
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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Marvell Technology is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 20.14. This valuation marks a discount compared to its industry's average Forward P/E of 21.22.
Also, we should mention that MRVL has a PEG ratio of 1.85. 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. MRVL's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.
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