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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $576.89 in the latest trading session, marking a -1.96% move from the prior day. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.
Heading into today, shares of the chipmaker had gained 8.02% over the past month, outpacing the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 1.03% in that time.
Broadcom Inc. will be looking to display strength as it nears its next earnings release. On that day, Broadcom Inc. is projected to report earnings of $10.14 per share, which would represent year-over-year growth of 20.86%. Our most recent consensus estimate is calling for quarterly revenue of $8.9 billion, up 15.52% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $40.27 per share and revenue of $34.91 billion. These results would represent year-over-year changes of +6.99% and +5.13%, respectively.
Investors might also notice recent changes to analyst estimates for Broadcom Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% higher. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 14.61. For comparison, its industry has an average Forward P/E of 17.33, which means Broadcom Inc. is trading at a discount to the group.
We can also see that AVGO currently has a PEG ratio of 1.14. 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. AVGO's industry had an average PEG ratio of 1.99 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 174, which puts it in the bottom 31% 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) Dips More Than Broader Markets: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $576.89 in the latest trading session, marking a -1.96% move from the prior day. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.
Heading into today, shares of the chipmaker had gained 8.02% over the past month, outpacing the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 1.03% in that time.
Broadcom Inc. will be looking to display strength as it nears its next earnings release. On that day, Broadcom Inc. is projected to report earnings of $10.14 per share, which would represent year-over-year growth of 20.86%. Our most recent consensus estimate is calling for quarterly revenue of $8.9 billion, up 15.52% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $40.27 per share and revenue of $34.91 billion. These results would represent year-over-year changes of +6.99% and +5.13%, respectively.
Investors might also notice recent changes to analyst estimates for Broadcom Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% higher. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 14.61. For comparison, its industry has an average Forward P/E of 17.33, which means Broadcom Inc. is trading at a discount to the group.
We can also see that AVGO currently has a PEG ratio of 1.14. 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. AVGO's industry had an average PEG ratio of 1.99 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 174, which puts it in the bottom 31% 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.