Marvel Technology Group
Chip makers have been incredibly strong over the last year, and Marvel Technology Group (MRVL) has been no exception. The stock has appreciated over 65% over the last 12 months, with a big gap up in November when the company announced it would acquire industry peer Cavium. Analysts were upbeat about the possible synergies from the two companies’ business models, and shares shot sharply higher. Over the last five years, profits have fallen on average by 7.5% per year, but the company has turned things around, with analysts forecasting earnings growth of 88.9% for its current fiscal year, and looking ahead forecast average annual earnings growth of 22.5% for the next five years. The stock is currently just shy of its 52-week high, with a P/E of 30, so shares could run into resistance before its next earnings report, which is scheduled for February 27. The stock gets an overall ranking of 93 from InvestorsObserver’s Stock Score Report, and is currently trading at $23.15 versus an average price target of $25.56.
Chart courtesy of www.stockcharts.com