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Why Marvell Technology (MRVL) Outpaced the Stock Market Today
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The most recent trading session ended with Marvell Technology (MRVL - Free Report) standing at $73.62, reflecting a +2% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.63%.
Heading into today, shares of the chipmaker had lost 0.95% over the past month, lagging the Business Services sector's gain of 0.56% and the S&P 500's gain of 4.28% in that time.
The investment community will be paying close attention to the earnings performance of Marvell Technology in its upcoming release. On that day, Marvell Technology is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.25 billion, down 6.74% from the year-ago period.
MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $5.4 billion. These results would represent year-over-year changes of -7.95% and -2.03%, respectively.
It is also important to note the recent changes to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Marvell Technology is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 51.82. This expresses a premium compared to the average Forward P/E of 22.68 of its industry.
Also, we should mention that MRVL has a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Marvell Technology (MRVL) Outpaced the Stock Market Today
The most recent trading session ended with Marvell Technology (MRVL - Free Report) standing at $73.62, reflecting a +2% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.63%.
Heading into today, shares of the chipmaker had lost 0.95% over the past month, lagging the Business Services sector's gain of 0.56% and the S&P 500's gain of 4.28% in that time.
The investment community will be paying close attention to the earnings performance of Marvell Technology in its upcoming release. On that day, Marvell Technology is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.25 billion, down 6.74% from the year-ago period.
MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $5.4 billion. These results would represent year-over-year changes of -7.95% and -2.03%, respectively.
It is also important to note the recent changes to analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Marvell Technology is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Marvell Technology is currently being traded at a Forward P/E ratio of 51.82. This expresses a premium compared to the average Forward P/E of 22.68 of its industry.
Also, we should mention that MRVL has a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.