In the latest trading session, Marvell Technology (MRVL) closed at $133.80, marking a +1.9% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.96%.
The chipmaker's stock has climbed by 43.37% in the past month, exceeding the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
The investment community will be paying close attention to the earnings performance of Marvell Technology in its upcoming release. In that report, analysts expect Marvell Technology to post earnings of $0.8 per share. This would mark year-over-year growth of 29.03%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.4 billion, indicating a 26.82% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.81 per share and a revenue of $10.83 billion, representing changes of +34.15% and +32.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Marvell Technology. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. Marvell Technology currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 34.5. For comparison, its industry has an average Forward P/E of 40.47, which means Marvell Technology is trading at a discount to the group.
Also, we should mention that MRVL has a PEG ratio of 0.95. 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. MRVL's industry had an average PEG ratio of 2.3 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Marvell Technology, Inc. (MRVL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).