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Should You Buy Marvell Technology (MRVL) Ahead of Earnings?
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Investors are always looking for stocks that are poised to beat at earnings season and Marvell Technology Group Ltd. (MRVL - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Marvell Technology is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for MRVL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 7 cents per share for MRVL, compared to a broader Zacks Consensus Estimate of 5 cents per share. This suggests that analysts have very recently bumped up their estimates for MRVL, giving the stock a Zacks Earnings ESP of 40% heading into earnings season.
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Clearly, recent earnings estimate revisions suggest that good things are ahead for Marvell Technology, and that a beat might be in the cards for the upcoming report.
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Should You Buy Marvell Technology (MRVL) Ahead of Earnings?
Investors are always looking for stocks that are poised to beat at earnings season and Marvell Technology Group Ltd. (MRVL - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Marvell Technology is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for MRVL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 7 cents per share for MRVL, compared to a broader Zacks Consensus Estimate of 5 cents per share. This suggests that analysts have very recently bumped up their estimates for MRVL, giving the stock a Zacks Earnings ESP of 40% heading into earnings season.
MARVELL TECH GP Price and EPS Surprise
MARVELL TECH GP Price and EPS Surprise | MARVELL TECH GP Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that MRVL has a Zacks Rank #1 (Strong Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Marvell Technology, and that a beat might be in the cards for the upcoming report.
The Best Place to Start Your Stock Search
Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>