Here's Why Marvell Technology (MRVL) Fell More Than Broader Market
Marvell Technology (MRVL) closed the most recent trading day at $73.73, moving -2.4% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq depreciated by 1.51%. Prior to today's trading, shares of the chipmaker had lost 14.38% lagged the Computer and Technology sector's loss of 0.27% and the S&P 500's gain of 0.93%.Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. The company is expected to report EPS of $0.79, up 31.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.21 billion, up 21.4% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $8.18 billion. These totals would mark changes of +80.89% and 0%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Marvell Technology. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.46% lower. Marvell Technology presently features a Zacks Rank of #3 (Hold). In terms of valuation, Marvell Technology is currently trading at a Forward P/E ratio of 21.16. This indicates a discount in contrast to its industry's Forward P/E of 36.01. We can additionally observe that MRVL currently boasts a PEG ratio of 0.45. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices. The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 27% of over 250 industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow MRVL in the coming trading sessions, be sure to utilize Zacks.com. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks