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Marvell Technology (MRVL) Stock Moves -0.35%: What You Should Know

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Marvell Technology (MRVL - Free Report) closed the most recent trading day at $67.75, moving -0.35% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Prior to today's trading, shares of the chipmaker had lost 18.08% over the past month. This has lagged the Business Services sector's loss of 7.73% and the S&P 500's loss of 6.25% in that time.

Marvell Technology will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. The company is expected to report EPS of $0.48, up 65.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 65.61% from the prior-year quarter.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Marvell Technology is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 30.81. For comparison, its industry has an average Forward P/E of 22.87, which means Marvell Technology is trading at a premium to the group.

It is also worth noting that MRVL currently has a PEG ratio of 1.27. 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. The Technology Services was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 40% 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.

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


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