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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 $283.42, moving +0.62% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the chipmaker had gained 9.05% over the past month. This has outpaced the Computer and Technology sector's gain of 5.62% and the S&P 500's gain of 4.28% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be March 14, 2019. In that report, analysts expect AVGO to post earnings of $5.22 per share. This would mark year-over-year growth of 1.95%. Our most recent consensus estimate is calling for quarterly revenue of $5.74 billion, up 7.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.75 per share and revenue of $24.41 billion, which would represent changes of +9.27% and +17.07%, respectively, from the prior year.
It is also important to note the 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO is currently a Zacks Rank #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 12.38. This represents a discount compared to its industry's average Forward P/E of 16.41.
Also, we should mention that AVGO has a PEG ratio of 1.04. 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. AVGO's industry had an average PEG ratio of 1.42 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 144, which puts it in the bottom 44% 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) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $283.42, moving +0.62% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the chipmaker had gained 9.05% over the past month. This has outpaced the Computer and Technology sector's gain of 5.62% and the S&P 500's gain of 4.28% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be March 14, 2019. In that report, analysts expect AVGO to post earnings of $5.22 per share. This would mark year-over-year growth of 1.95%. Our most recent consensus estimate is calling for quarterly revenue of $5.74 billion, up 7.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.75 per share and revenue of $24.41 billion, which would represent changes of +9.27% and +17.07%, respectively, from the prior year.
It is also important to note the 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO is currently a Zacks Rank #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 12.38. This represents a discount compared to its industry's average Forward P/E of 16.41.
Also, we should mention that AVGO has a PEG ratio of 1.04. 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. AVGO's industry had an average PEG ratio of 1.42 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 144, which puts it in the bottom 44% 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.