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Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know

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Marvell Technology (MRVL - Free Report) closed at $57.35 in the latest trading session, marking a -1.49% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.08%.

Coming into today, shares of the chipmaker had gained 32.86% in the past month. In that same time, the Business Services sector gained 18.72%, while the S&P 500 gained 8.78%.

Investors will be hoping for strength from Marvell Technology as it approaches its next earnings release, which is expected to be August 25, 2022. In that report, analysts expect Marvell Technology to post earnings of $0.56 per share. This would mark year-over-year growth of 64.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.51 billion, up 40.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.33 per share and revenue of $6.19 billion, which would represent changes of +48.41% and +38.61%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Marvell Technology currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Marvell Technology currently has a Forward P/E ratio of 25.02. This represents a discount compared to its industry's average Forward P/E of 26.67.

Investors should also note that MRVL has a PEG ratio of 1.64 right now. 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 2.25 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% 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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