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Marvell Technology (MRVL) Gains But Lags Market: What You Should Know

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Marvell Technology (MRVL - Free Report) closed at $67.73 in the latest trading session, marking a +0.09% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day.

Heading into today, shares of the chipmaker had gained 7.29% over the past month, outpacing the Business Services sector's loss of 2.28% and the S&P 500's gain of 2.96% in that time.

Investors will be hoping for strength from MRVL as it approaches its next earnings release. The company is expected to report EPS of $0.38, up 52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 53.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.45 per share and revenue of $4.28 billion, which would represent changes of +57.61% and +44.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MRVL. 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MRVL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 46.82. Its industry sports an average Forward P/E of 29.65, so we one might conclude that MRVL is trading at a premium comparatively.

Meanwhile, MRVL's PEG ratio is currently 2.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.91 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.

To follow MRVL in the coming trading sessions, be sure to utilize Zacks.com.


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