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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 $308.79 in the latest trading session, marking a +0.57% move from the prior day. This move outpaced the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the chipmaker had lost 5.26% over the past month. This has lagged the Computer and Technology sector's gain of 6.58% and the S&P 500's gain of 4.73% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. In that report, analysts expect AVGO to post earnings of $5.21 per share. This would mark a year-over-year decline of 6.13%. Our most recent consensus estimate is calling for quarterly revenue of $5.93 billion, up 2.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.11 per share and revenue of $25.02 billion. These totals would mark changes of +8.55% and +10.72%, respectively, from last year.
Any recent changes to analyst estimates for AVGO should also be noted by investors. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO currently has a Zacks Rank of #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 13.29. This valuation marks a discount compared to its industry's average Forward P/E of 23.01.
Meanwhile, AVGO's PEG ratio is currently 1.24. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 $308.79 in the latest trading session, marking a +0.57% move from the prior day. This move outpaced the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the chipmaker had lost 5.26% over the past month. This has lagged the Computer and Technology sector's gain of 6.58% and the S&P 500's gain of 4.73% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. In that report, analysts expect AVGO to post earnings of $5.21 per share. This would mark a year-over-year decline of 6.13%. Our most recent consensus estimate is calling for quarterly revenue of $5.93 billion, up 2.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.11 per share and revenue of $25.02 billion. These totals would mark changes of +8.55% and +10.72%, respectively, from last year.
Any recent changes to analyst estimates for AVGO should also be noted by investors. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO currently has a Zacks Rank of #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 13.29. This valuation marks a discount compared to its industry's average Forward P/E of 23.01.
Meanwhile, AVGO's PEG ratio is currently 1.24. 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. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.