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Bull of the Day: Broadcom (AVGO)

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After hitting an all-time high of 16,212 on November 22nd, the NASDAQ Composite index has come under pressure. The tech-heavy index came all the way down to the south end of its 200-day moving average intraday this last Monday. The good news for investors is, the key level held and buyers stepped in. With some strength in the index, it may feel like you can go out there and buy any tech stock you like. Rather than randomly putting together a four-letter ticker to run after, why not look for a tech stock that has a strong earnings trend behind it as well? This way, the technical support of a key level coupled with strong earnings can show you what profits really look like.

One way to uncover these stocks is by leaning on the time-tested strength of the Zacks Rank. Stocks in the good graces of the Zacks Rank, like today’s Bull of the Day, have the strongest earnings trends. That bull today is Zacks Rank #1 (Strong Buy) Broadcom (AVGO - Free Report) .

Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. 

The reason for the favorable rank on Broadcom lies in the recent earnings estimate revisions coming from analysts. Over the last sixty days, twelve analysts have increased their earnings estimates for the current year while four have done so for next year. The bullish actions have increased our Zacks Consensus Estimates for the current year from $31.01 to $33.03 while next year’s number is up from $33.31 to $36.29. That represents growth of 17.92% for the current year and 9.87% for next year.

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