Marvell Technology (MRVL) closed the last trading day at USD 57.42, up 0.05% from the previous trading session. The stock trailed the S&P 500’s daily gain of 0.75%.
Today, the chipmaker’s shares were up 21.64% over the past month. At the same time, the corporate services sector rose 3.61% while the S&P 500 rose 2.91%.
MRVL will look to show strength as it nears its next earnings release. In this report, analysts expect MRVL to post earnings of $ 0.31 per share. This would mean a growth of 47.62% compared to the previous year. Meanwhile, the Zacks Consensus Estimate forecasts net sales of $ 1.07 billion, up 46.46% from the same period last year.
For the full year, our Zacks Consensus Estimates suggest that analysts expect earnings of $ 1.40 per share and revenue of $ 4.24 billion. These sums would mean a change of +52.17% and +42.84% respectively compared to the previous year.
It is also important to note the recent changes in analyst estimates for MRVL. These revisions help highlight the ever-changing nature of short-term business trends. Hence, we can interpret positive valuation revisions as a good sign of the company’s business outlook.
Our research shows that these changes in estimates correlate directly with short-term stock prices. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these changes in estimates into account and provides a clear, actionable rating model.
The Zacks Rank system ranges from # 1 (strong buy) to # 5 (strong sell) and has a proven, externally audited track record of outperforming Monthly the EPS estimate from Zacks Consensus is down 9.05%. MRVL currently has a Zacks rank of # 3 (Hold).
Investors should also check out MRVL’s current valuation metrics, including its forward P / E of 40.97. The industry has an average forward P / E of 32.65, so we can conclude that MRVL is trading at a premium by comparison.
It’s also worth noting that MRVL currently has a PEG ratio of 1.99. The PEG ratio is similar to the widely used P / E ratio, but it also takes into account the company’s expected earnings growth rate. MRVL’s industry as of yesterday’s close of trading had an average PEG ratio of 2.67.
The technology services industry is part of the business services sector. This industry currently has a Zacks industry rank of 216, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank measures 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-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
To keep track of MRVL in the upcoming trading sessions, be sure to use Zacks.com.
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