Marvell Technology (MRVL) closed at $30.70 in the latest trading session, marking a +0.99% move from the prior day. This move lagged the S&P 500’s daily gain of 1.48%. At the same time, the Dow added 2.21%, and the tech-heavy Nasdaq gained 0.77%.
Investors will be hoping for strength from MRVL as it approaches its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $676.13 million, up 2.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.85 per share and revenue of $2.96 billion, which would represent changes of +28.79% and +9.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MRVL. 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.
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. The Zacks Consensus EPS estimate has moved 2.17% lower within the past month. MRVL is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MRVL’s current valuation metrics, including its Forward P/E ratio of 60.8. For comparison, its industry has an average Forward P/E of 43.42, which means MRVL is trading at a premium to the group.
It is also worth noting that MRVL currently has a PEG ratio of 3.21. 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 3.21 as of yesterday’s close.
The Semiconductor – Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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