Marvell Hit High Records, But its Shares are Discounted Now

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 Stock markets weathered many storms over the last year, but the Covid-19 pandemic seems to retreat at last thanks to vaccinations. Investors are optimistic, and futures rally. Now is a good time to buy some stocks, until the prices jump higher. But which stocks are worth grabbing? Analysts think that tech stocks, such as Marvell, are always a safe choice.

 

Marvell Technology Group is an infrastructure semiconductor solutions company. Its storage, wireless connectivity, and network infrastructure offerings are set to benefit from the continued growth of cloud computing and the 5G rollout.

 

In October 2020, the company announced its plan to buy Inphi as it would help to boost its standing and offerings within the key growth areas of tech. According to Marvell, the deal will close by the second half of calendar 2021.

 

Meanwhile, the stock’s Q3 FY21 revenue surged forward by more than 13%. Analysts expect its fourth-quarter revenue to soar by another 10% to help increase its adjusted earnings by 70% to $0.29 a share. The company plans to release its fiscal 2021 financial results on March 3, with its revenue forecasted to skyrocket by 10% to roughly $3 billion. Furthermore, experts estimated its adjusted EPS figure to climb by 41%.

 

There’s more, though. Marvell’s FY22 outlook seems even more impressive, with its revenue forecasted to rally 18% higher to $3.5 billion. The stock’s earnings are also set to come in 46% stronger.

 

What do the experts advise about this stock? 

 

Wall Street likes Marvell’s ability to grow and simultaneously provide exposure to the future of tech. In the last five years, the stock has skyrocketed by 500%. The shares jumped by 100% during the last 12 months and 20% in the past three despite the Covid-19 pandemic crisis.

 

Besides, investors might find an enticing entry point currently, considering that the stock has cooled off recently to rest approximately 8% off its January records at around $51 per share. As it stands, it is not overbought currently in terms of the Relative Strength Index.

 

The analysts think that now is a good time to buy Marvell shares before they skyrocket again. The company’s positive earnings revisions help it land a strong-buy rating from various Wall Street experts.

 

Furthermore, it trades at an 18% discount to its own year-long highs. And the company pays a dividend that is currently yielding about 0.50%, which is quite a high rate. Some tech stocks rallied during the pandemic and will continue to rally. Marvell is one of them. We should expect more winnings for this stock.

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