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

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In the latest market close, Marvell Technology (MRVL - Free Report) reached $68.83, with a -1.87% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.

Heading into today, shares of the chipmaker had gained 16.3% over the past month, outpacing the Business Services sector's gain of 1.8% and the S&P 500's gain of 3.36% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.46, showcasing no movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.42 billion, indicating a 0.03% downward movement from the same quarter last year.

MRVL's full-year Zacks Consensus Estimates are calling for earnings of $1.51 per share and revenue of $5.5 billion. These results would represent year-over-year changes of -28.77% and -7.13%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Marvell Technology. 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. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% upward. Currently, Marvell Technology is carrying a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Marvell Technology is holding a Forward P/E ratio of 46.45. This signifies a premium in comparison to the average Forward P/E of 24.63 for its industry.

It is also worth noting that MRVL currently has a PEG ratio of 6.08. 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 1.5 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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