Marvell Technology (MRVL) closed at $34.69 in the latest trading session, marking a -1.87% move from the prior day. This move lagged the S&P 500’s daily loss of 0.8%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 1.69%.
Coming into today, shares of the chipmaker had lost 3.6% in the past month. In that same time, the Computer and Technology sector gained 3.6%, while the S&P 500 gained 5.66%.
Investors will be hoping for strength from MRVL as it approaches its next earnings release, which is expected to be August 27, 2020. In that report, analysts expect MRVL to post earnings of $0.20 per share. This would mark year-over-year growth of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $720.50 million, up 9.74% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.92 per share and revenue of $3.01 billion. These totals would mark changes of +39.39% and +11.61%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MRVL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 currently a Zacks Rank #3 (Hold).
In terms of valuation, MRVL is currently trading at a Forward P/E ratio of 38.25. This valuation marks a premium compared to its industry’s average Forward P/E of 29.86.
We can also see that MRVL currently has a PEG ratio of 1.68. 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. MRVL’s industry had an average PEG ratio of 9.29 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 124, putting it in the top 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Marvell Technology Group Ltd. (MRVL) : Free Stock Analysis Report
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