Marvell Technology (MRVL) ended the recent trading session at $159.80, demonstrating a -7.08% change from the preceding day’s closing price. The stock fell short of the S&P 500, which registered a gain of 1.58% for the day. At the same time, the Dow added 3.03%, and the tech-heavy Nasdaq gained 1.44%.
Prior to today’s trading, shares of the chipmaker had lost 40.08% lagged the Computer and Technology sector’s loss of 12.04% and the S&P 500’s loss of 1.97%.
The upcoming earnings release of Marvell Technology will be of great interest to investors. The company is predicted to post an EPS of $1.1, indicating a 44.74% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.16 billion, showing a 52.17% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.21 per share and a revenue of $12.06 billion, indicating changes of +48.24% and +54.71%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Marvell Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. Marvell Technology currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Marvell Technology is presently trading at a Forward P/E ratio of 40.81. For comparison, its industry has an average Forward P/E of 29.23, which means Marvell Technology is trading at a premium to the group.
We can additionally observe that MRVL currently boasts a PEG ratio of 3.71. 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. Electronics – Semiconductors stocks are, on average, holding a PEG ratio of 0.85 based on yesterday’s closing prices.
Source: finance.yahoo.com
