Marvell Technology (MRVL) closed at $26.41 in the latest trading session, marking a +0.27% move from the prior day. The stock outpaced the S&P 500’s daily loss of 2.05%. At the same time, the Dow lost 1.89%, and the tech-heavy Nasdaq lost 2.07%.
Investors will be hoping for strength from MRVL as it approaches its next earnings release. In that report, analysts expect MRVL to post earnings of $0.14 per share. This would mark a year-over-year decline of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $676.13 million, up 2.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.85 per share and revenue of $2.96 billion. These totals would mark changes of +28.79% and +9.58%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MRVL. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 4.46% lower. MRVL is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MRVL currently has a Forward P/E ratio of 30.93. For comparison, its industry has an average Forward P/E of 26.91, which means MRVL is trading at a premium to the group.
Also, we should mention that MRVL has a PEG ratio of 1.64. 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. MRVL’s industry had an average PEG ratio of 1.64 as of yesterday’s close.
The Semiconductor – Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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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