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Marvell Technology (MRVL) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Marvell Technology (MRVL) closed at $45.84, marking a -1.74% move from the previous day. This move lagged the S&P 500's daily loss of 0.68%.

Heading into today, shares of the chipmaker had gained 1.94% over the past month, lagging the Computer and Technology sector's gain of 9.54% and the S&P 500's gain of 6.62% in that time.

MRVL will be looking to display strength as it nears its next earnings release. In that report, analysts expect MRVL to post earnings of $0.27 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $800.39 million, up 15.39% from the year-ago period.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.37 per share and revenue of $3.51 billion. These results would represent year-over-year changes of +48.91% and +18.35%, respectively.

It is also important to note the recent changes to analyst estimates for MRVL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MRVL currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, MRVL is holding a Forward P/E ratio of 34.95. For comparison, its industry has an average Forward P/E of 34.95, which means MRVL is trading at a no noticeable deviation to the group.

We can also see that MRVL currently has a PEG ratio of 1.79. 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. The Semiconductor - Communications was holding an average PEG ratio of 2.93 at yesterday's closing price.

The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges 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 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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