Back to top

Image: Bigstock

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

Read MoreHide Full Article

Marvell Technology (MRVL - Free Report) closed at $68.75 in the latest trading session, marking a +1.42% move from the prior day. The stock lagged the S&P 500's daily gain of 2.24%. At the same time, the Dow added 2.51%, and the tech-heavy Nasdaq lost 0.2%.

Coming into today, shares of the chipmaker had gained 4.47% in the past month. In that same time, the Business Services sector lost 3.35%, while the S&P 500 lost 2.58%.

Marvell Technology will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. On that day, Marvell Technology is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 65.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 65.61% from the year-ago period.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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, 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 a Zacks Rank #3 (Hold).

Digging into valuation, Marvell Technology currently has a Forward P/E ratio of 30.72. This represents a premium compared to its industry's average Forward P/E of 22.47.

Also, we should mention that MRVL has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRVL's industry had an average PEG ratio of 1.9 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marvell Technology, Inc. (MRVL) - free report >>

Published in