Marvell Technology (MRVL) Stock Sinks As Market Gains: What You Should Know
Marvell Technology (MRVL) closed at $26.51 in the latest trading session, marking a -0.64% move from the prior day. This move lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.18%.
Heading into today, shares of the chipmaker had gained 6.08% over the past month, outpacing the Computer and Technology sector's gain of 4.77% and the S&P 500's gain of 3.89% in that time.
MRVL will be looking to display strength as it nears its next earnings release, which is expected to be December 3, 2019. In that report, analysts expect MRVL to post earnings of $0.17 per share. This would mark a year-over-year decline of 48.48%. Our most recent consensus estimate is calling for quarterly revenue of $660.23 million, down 22.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.70 per share and revenue of $2.68 billion. These totals would mark changes of -41.18% and -6.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MRVL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. MRVL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 38.3. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 38.3.
We can also see that MRVL currently has a PEG ratio of 6.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Communications was holding an average PEG ratio of 4.95 at yesterday's closing price.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.