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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $456.52, moving +1.51% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.19%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Heading into today, shares of the chipmaker had lost 4.04% over the past month, lagging the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. In that report, analysts expect Broadcom Inc. to post earnings of $10.29 per share. This would mark year-over-year growth of 31.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.9 billion, up 20.13% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $37.44 per share and revenue of $33.17 billion. These results would represent year-over-year changes of +33.67% and +20.84%, respectively.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.03% lower. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 12.01. For comparison, its industry has an average Forward P/E of 12.45, which means Broadcom Inc. is trading at a discount to the group.
Also, we should mention that AVGO has a PEG ratio of 0.8. 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 0.81 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 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $456.52, moving +1.51% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.19%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Heading into today, shares of the chipmaker had lost 4.04% over the past month, lagging the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. In that report, analysts expect Broadcom Inc. to post earnings of $10.29 per share. This would mark year-over-year growth of 31.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.9 billion, up 20.13% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $37.44 per share and revenue of $33.17 billion. These results would represent year-over-year changes of +33.67% and +20.84%, respectively.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.03% lower. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 12.01. For comparison, its industry has an average Forward P/E of 12.45, which means Broadcom Inc. is trading at a discount to the group.
Also, we should mention that AVGO has a PEG ratio of 0.8. 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 0.81 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 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.