Marvell Technology (MRVL) Rises As Market Takes a Dip: Key Facts

In the latest market close, Marvell Technology (MRVL) reached $73.59, with a +0.53% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.72%. Elsewhere, the Dow saw a downswing of 1%, while the tech-heavy Nasdaq depreciated by 0.95%.

Shares of the chipmaker have depreciated by 7.75% over the course of the past month, underperforming the Business Services sector's loss of 0.92% and the S&P 500's gain of 2.16%.

The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.23, marking a 25.81% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, down 12.95% from the year-ago period.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.35 per share and revenue of $5.32 billion. These results would represent year-over-year changes of -10.6% and -3.41%, respectively.

It is also important to note the recent changes to analyst estimates for Marvell Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 44.22% lower. Marvell Technology currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Marvell Technology is presently being traded at a Forward P/E ratio of 54.25. This represents a premium compared to its industry's average Forward P/E of 26.63.

One should further note that MRVL currently holds a PEG ratio of 2.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services industry had an average PEG ratio of 1.73 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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