Marvell cited the explosion in AI as a tailwind for the rest of the year, but analysts have not reacted by raising estimates. That gives Marvell a low bar to clear and may make the stock more attractive to investors in the event Nvidia fails to hammer estimates when it reports results after markets close on Wednesday.
Analysts remain solidly bullish on Marvell stock. Of 32 brokerages covering the shares, 29 have a Buy or Strong Buy rating, and the rest rate it at Hold. At a share price of around $60.00, the upside potential to a median price target of $9.25 is 15.4%. At the high price target of $100.00, the upside potential is 66.7%.
For its second quarter of fiscal 2024, Marvell’s revenue is forecast to come in at $1.33 billion, up 0.7% sequentially but down 12.5% year over year. Adjusted EPS are forecast at $0.32, up 4.4% sequentially and 43.9% lower year over year. For the full fiscal year ending next January, EPS are forecast at $1.53, down 27.8%, on sales of $5.51 billion, down 6.9%.
Marvell stock trades at 39.0 times expected 2024 EPS, 25.4 times estimated 2025 earnings of $2.34 and 19.9 times estimated 2026 earnings of $2.99 per share. The 52-week trading range is $33.75 to $67.99, and Marvell pays an annual dividend of $0.24 (yield of 0.42%). Total shareholder return for the past year was 17.63%.
Nordstrom
Department store operator Nordstrom Inc. (NYSE: JWN) has seen its stock price drop by more than 25% over the past 12 months. For the year to date, however, shares are up 6.6%. The less good news is that the stock is down 26% since August 1.
There is no cause specific to Nordstrom to account for such a steep and quick decline. Overall macroeconomic concerns like consumer spending forecasts and costs are amplified somewhat given Nordstrom’s upscale image. Analysts’ expectations have been set a bit high for both earnings and revenue. If Nordstrom can top those estimates, the share price will soar. If it misses, the reverse is easily possible.
Analysts are wary. Of 20 brokerages covering the stock, 11 have a Hold rating and only four have Buy ratings. At a share price of around $17.00, the upside potential based on a median price target of $20.00 is 15%. At the high price target of $40.00, the upside potential is about 135%.
For the fiscal second quarter that ended in July, revenue is forecast at $3.69 billion, up 15.9% sequentially but down 9.8% year over year. Analysts have forecast EPS of $0.45 for the quarter, compared to EPS of $0.0.7 in the prior quarter and EPS of $0.81 in the prior year. For the full 2024 fiscal year, consensus estimates call for EPS of $1.99, up 18.4%, on sales of $14.85 billion, down 4.4%.
Nordstrom stock trades at 8.5 times expected 2024 EPS, 8.1 times estimated 2025 earnings of $2.08 and 7.5 times estimated 2026 earnings of $2.24 per share. The 52-week range is $14.03 to $27.15. The company pays an annual dividend of $0.76 (yield of 4.42%). Total shareholder return for the past year was negative 22.94%.
Originally published at 24/7 Wall St.
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