Investment Education

The latest trading session saw Marvell Technology (MRVL) ending at $90.70, denoting a +0.7% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.61% for the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.64%.

The the stock of chipmaker has risen by 10.27% in the past month, leading the Business Services sector's gain of 9.48% and the S&P 500's gain of 3.07%.

Investors will be eagerly watching for the performance of Marvell Technology in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on December 3, 2024. The company is expected to report EPS of $0.40, down 2.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, up 2.47% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.46 per share and a revenue of $5.52 billion, demonstrating changes of -3.31% and +0.27%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Marvell Technology. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Marvell Technology is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Marvell Technology currently has a Forward P/E ratio of 61.85. This valuation marks a premium compared to its industry's average Forward P/E of 27.15.

One should further note that MRVL currently holds a PEG ratio of 2.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services industry had an average PEG ratio of 1.58 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.