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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 $482.11, moving +1.45% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the chipmaker had gained 8.57% in the past month. In that same time, the Computer and Technology sector lost 1.71%, while the S&P 500 gained 4.72%.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. On that day, Broadcom Inc. is projected to report earnings of $10.27 per share, which would represent year-over-year growth of 31.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.9 billion, up 20.1% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. Broadcom Inc. currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 11.86 right now. For comparison, its industry has an average Forward P/E of 13.65, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts 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 $482.11, moving +1.45% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the chipmaker had gained 8.57% in the past month. In that same time, the Computer and Technology sector lost 1.71%, while the S&P 500 gained 4.72%.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. On that day, Broadcom Inc. is projected to report earnings of $10.27 per share, which would represent year-over-year growth of 31.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.9 billion, up 20.1% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. Broadcom Inc. currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 11.86 right now. For comparison, its industry has an average Forward P/E of 13.65, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts 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.