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Marvell Technology (MRVL) Outpaces Stock Market Gains: What You Should Know

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Marvell Technology (MRVL - Free Report) closed the most recent trading day at $60.41, moving +0.57% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.19%.

Heading into today, shares of the chipmaker had lost 17.67% over the past month, lagging the Business Services sector's loss of 8.81% and the S&P 500's loss of 8.48% in that time.

Marvell Technology will be looking to display strength as it nears its next earnings release, which is expected to be May 26, 2022. On that day, Marvell Technology is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 75.86%. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 71.43% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $6.15 billion, which would represent changes of +42.04% and +37.74%, respectively, from the prior year.

Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. Marvell Technology currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Marvell Technology currently has a Forward P/E ratio of 26.95. This valuation marks a premium compared to its industry's average Forward P/E of 20.18.

We can also see that MRVL currently has a PEG ratio of 1.54. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.68 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 189, putting it in the bottom 26% 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.

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


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