How Should You Trade Marvell Technology Stock at New Record Highs?

• Marvell Technology (MRVL) demonstrates strong technical momentum and is trading at new all-time highs.
• Shares are up 150% over the past year.
• MRVL maintains a 100% “Buy” technical opinion from Barchart.
• MRVL’s revenue is projected to grow 32% this year and 36% next year, with earnings expected to rise 35% and 42% respectively.

Today’s Featured Stock

Valued at $117 billion, Marvell Technology (MRVL) is a fabless designer, developer, and marketer of analog, mixed-signal, and digital signal processing integrated circuits. 

Marvell specializes in highly integrated System-on-a-Chip (SOC) and System-in-a-Package (SiP) devices based primarily on ARM designs and sells to both enterprise and consumer customers. It has a significant number of patents in design, software, and reference platforms to its credit. The company’s product line includes application processors, controllers, switches, communications and networking processors and technologies, as well as other SoCs for printers and smart home products. These serve two broad end markets: data center and enterprise networking.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. MRVL checks those boxes. The Trend Seeker issued a new “Buy” signal on March 9. Since then, the stock has gained 45.28%.

Barchart Technical Indicators for Marvell Technology

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Marvell Technology scored an all-time high of $138.19 on April 15.

• Marvell Tech has a Weighted Alpha of +174.06.
• MRVL has a 100% “Buy” opinion from Barchart.
• The stock has gained 152.44% over the past 52 weeks.
• Marvell Tech has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $134.60 with a 50-day moving average of $91.57.
• MRVL has made 12 new highs and gained 53.20% over the past month.
• Relative Strength Index (RSI) is at 81.88.
• There’s a technical support level around $131.59.

Don’t Forget the Fundamentals

• $117 billion market capitalization.
• 58.36x price-earnings ratio.
• 0.18% dividend yield.
• Analysts project an increase in revenue of 32.37% this year and another 36.27% next year.
• Earnings are estimated to increase 34.56% this year and an additional 41.55% next year.

Analyst and Investor Sentiment on Marvell Technology

• The Wall Street analysts followed by Barchart give the stock 27 “Strong Buy,” 3 “Moderate Buy,” and 6 “Hold” opinions with price targets between $80 and $164.
• Value Line rates the stock “Above Average” with3-5-year price targets between $140 and $210 with an annual rate of return of 23% at the $210 level!
• CFRA’s MarketScope rates the stock a “Buy” with a price target of $150.
• Morningstar thinks the stock is fairly valued.
• 102,729 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is only 3.24% of the float with 1.39 days to cover the float.

The Bottom Line on Marvell Technology

Robust projections of growth in both revenue and earnings make this a great find if you are not scared away by such a high valuation.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.