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Marvell Technology (MRVL) closed the latest trading day at $115.15, indicating a +0.73% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.86%, while the tech-heavy Nasdaq depreciated by 0.38%.
Coming into today, shares of the chipmaker had lost 5.34% in the past month. In that same time, the Computer and Technology sector lost 1.29%, while the S&P 500 lost 2.2%.
The investment community will be closely monitoring the performance of Marvell Technology in its forthcoming earnings report. In that report, analysts expect Marvell Technology to post earnings of $0.59 per share. This would mark year-over-year growth of 28.26%. Simultaneously, our latest consensus estimate expects the revenue to be $1.8 billion, showing a 26.41% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.56 per share and revenue of $5.75 billion, indicating changes of +3.31% and +4.46%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Marvell Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.54% higher. Marvell Technology is holding a Zacks Rank of #1 (Strong Buy) right now.
From a valuation perspective, Marvell Technology is currently exchanging hands at a Forward P/E ratio of 73.46. Its industry sports an average Forward P/E of 26.8, so one might conclude that Marvell Technology is trading at a premium comparatively.
Also, we should mention that MRVL has a PEG ratio of 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.12.