In the latest close session, Marvell Technology (MRVL) was down 3.52% at $274.66. The stock fell short of the S&P 500, which registered a loss of 0.47% for the day. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Shares of the chipmaker witnessed a gain of 21.14% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.08%, and the S&P 500's gain of 1.15%.
The upcoming earnings release of Marvell Technology will be of great interest to investors. In that report, analysts expect Marvell Technology to post earnings of $1.1 per share. This would mark year-over-year growth of 44.74%. At the same time, our most recent consensus estimate is projecting a revenue of $3.16 billion, reflecting a 52.17% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.21 per share and a revenue of $12.05 billion, signifying shifts of +48.24% and +46.99%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.6% higher. Marvell Technology is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 67.62. This valuation marks a premium compared to its industry average Forward P/E of 38.83.
It is also worth noting that MRVL currently has a PEG ratio of 1.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.31.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Marvell Technology, Inc. (MRVL): Free Stock Analysis Report
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