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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 at $601.12 in the latest trading session, marking a +1.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 11.35%.
Prior to today's trading, shares of the chipmaker had gained 2.46% over the past month. This has lagged the Computer and Technology sector's gain of 10.31% and the S&P 500's gain of 4.49% in that time.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. This is expected to be March 2, 2023. In that report, analysts expect Broadcom Inc. to post earnings of $10.16 per share. This would mark year-over-year growth of 21.1%. Our most recent consensus estimate is calling for quarterly revenue of $8.89 billion, up 15.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.33 per share and revenue of $34.76 billion. These totals would mark changes of +7.15% and +4.7%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Broadcom Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 14.71. Its industry sports an average Forward P/E of 23.44, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Investors should also note that AVGO has a PEG ratio of 1.15 right now. 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 3.64 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 181, which puts it in the bottom 29% 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
Broadcom Inc. (AVGO - Free Report) closed at $601.12 in the latest trading session, marking a +1.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 11.35%.
Prior to today's trading, shares of the chipmaker had gained 2.46% over the past month. This has lagged the Computer and Technology sector's gain of 10.31% and the S&P 500's gain of 4.49% in that time.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. This is expected to be March 2, 2023. In that report, analysts expect Broadcom Inc. to post earnings of $10.16 per share. This would mark year-over-year growth of 21.1%. Our most recent consensus estimate is calling for quarterly revenue of $8.89 billion, up 15.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.33 per share and revenue of $34.76 billion. These totals would mark changes of +7.15% and +4.7%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Broadcom Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 14.71. Its industry sports an average Forward P/E of 23.44, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Investors should also note that AVGO has a PEG ratio of 1.15 right now. 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 3.64 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 181, which puts it in the bottom 29% 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.