Marvell Technology (MRVL) Laps the Stock Market: Here's Why

The most recent trading session ended with Marvell Technology (MRVL) standing at $69.13, reflecting a +0.74% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.37%.

Prior to today's trading, shares of the chipmaker had lost 2.17% over the past month. This has lagged the Business Services sector's gain of 8.35% and the S&P 500's gain of 3.8% in that time.

The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. The company is scheduled to release its earnings on March 7, 2024. The company's upcoming EPS is projected at $0.46, signifying steadiness compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.42 billion, indicating a 0.03% decrease compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Marvell Technology. Such recent modifications usually signify the changing landscape 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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Marvell Technology currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 34.64. This signifies a premium in comparison to the average Forward P/E of 26.15 for its industry.

Also, we should mention that MRVL has a PEG ratio of 4.53. 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. The average PEG ratio for the Technology Services industry stood at 1.54 at the close of the market yesterday.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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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.

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