Marvell Technology (MRVL) closed the most recent trading day at $36.59, moving -1.24% from the previous trading session. This change lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.
Prior to today's trading, shares of the chipmaker had gained 5.92% over the past month. This has lagged the Computer and Technology sector's gain of 7.57% and outpaced the S&P 500's gain of 5.71% in that time.
Investors will be hoping for strength from MRVL as it approaches its next earnings release. On that day, MRVL is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $720.50 million, up 9.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.92 per share and revenue of $3.01 billion, which would represent changes of +39.39% and +11.61%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MRVL. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MRVL is currently a Zacks Rank #2 (Buy).
Looking at its valuation, MRVL is holding a Forward P/E ratio of 40.09. This represents a premium compared to its industry's average Forward P/E of 31.19.
We can also see that MRVL currently has a PEG ratio of 1.76. 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. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 3.56 based on yesterday's closing prices.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.