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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $281.50, marking a +0.06% move from the previous day. This change outpaced the S&P 500's 0.27% loss on the day. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the chipmaker had gained 11.77% over the past month. This has outpaced the Computer and Technology sector's gain of 7.6% and the S&P 500's gain of 6.26% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. The company is expected to report EPS of $5.24, up 2.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 7.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.84 per share and revenue of $24.49 billion, which would represent changes of +9.7% and +17.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 12.32. For comparison, its industry has an average Forward P/E of 16.22, which means AVGO is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.36 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 141, which puts it in the bottom 45% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.
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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $281.50, marking a +0.06% move from the previous day. This change outpaced the S&P 500's 0.27% loss on the day. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the chipmaker had gained 11.77% over the past month. This has outpaced the Computer and Technology sector's gain of 7.6% and the S&P 500's gain of 6.26% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. The company is expected to report EPS of $5.24, up 2.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 7.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.84 per share and revenue of $24.49 billion, which would represent changes of +9.7% and +17.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 12.32. For comparison, its industry has an average Forward P/E of 16.22, which means AVGO is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.36 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 141, which puts it in the bottom 45% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.