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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 $237.61 in the latest trading session, marking a +0.54% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq lost 0.15%.
Prior to today's trading, shares of the chipmaker had gained 3.65% over the past month. This has outpaced the Computer and Technology sector's loss of 2.32% and the S&P 500's loss of 0.57% 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 December 6, 2018. In that report, analysts expect AVGO to post earnings of $5.52 per share. This would mark year-over-year growth of 20.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.41 billion, up 11.61% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AVGO. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. AVGO currently has a Zacks Rank of #4 (Sell).
Digging into valuation, AVGO currently has a Forward P/E ratio of 10.93. For comparison, its industry has an average Forward P/E of 17.05, which means AVGO is trading at a discount to the group.
Meanwhile, AVGO's PEG ratio is currently 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 42% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $237.61 in the latest trading session, marking a +0.54% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq lost 0.15%.
Prior to today's trading, shares of the chipmaker had gained 3.65% over the past month. This has outpaced the Computer and Technology sector's loss of 2.32% and the S&P 500's loss of 0.57% 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 December 6, 2018. In that report, analysts expect AVGO to post earnings of $5.52 per share. This would mark year-over-year growth of 20.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.41 billion, up 11.61% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AVGO. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. AVGO currently has a Zacks Rank of #4 (Sell).
Digging into valuation, AVGO currently has a Forward P/E ratio of 10.93. For comparison, its industry has an average Forward P/E of 17.05, which means AVGO is trading at a discount to the group.
Meanwhile, AVGO's PEG ratio is currently 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 42% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.