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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $334, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily gain of 1%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.6%.
Heading into today, shares of the chipmaker had gained 6.57% over the past month, outpacing the Computer and Technology sector's gain of 6.38% and the S&P 500's gain of 4.48% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be September 3, 2020. The company is expected to report EPS of $5.23, up 1.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.78 billion, up 4.82% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $21.52 per share and revenue of $23.58 billion. These results would represent year-over-year changes of +1.08% and +4.35%, respectively.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 15.34 right now. For comparison, its industry has an average Forward P/E of 20.81, which means AVGO is trading at a discount to the group.
Also, we should mention that AVGO has a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $334, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily gain of 1%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.6%.
Heading into today, shares of the chipmaker had gained 6.57% over the past month, outpacing the Computer and Technology sector's gain of 6.38% and the S&P 500's gain of 4.48% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be September 3, 2020. The company is expected to report EPS of $5.23, up 1.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.78 billion, up 4.82% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $21.52 per share and revenue of $23.58 billion. These results would represent year-over-year changes of +1.08% and +4.35%, respectively.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 15.34 right now. For comparison, its industry has an average Forward P/E of 20.81, which means AVGO is trading at a discount to the group.
Also, we should mention that AVGO has a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.