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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $401.58 in the latest trading session, marking a +1.68% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the chipmaker had gained 11.25% over the past month. This has outpaced the Computer and Technology sector's gain of 7.04% and the S&P 500's gain of 7.53% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be December 10, 2020. The company is expected to report EPS of $6.24, up 15.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, up 11.11% from the prior-year quarter.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 15.62. For comparison, its industry has an average Forward P/E of 28.2, which means AVGO is trading at a discount to the group.
Investors should also note that AVGO has a PEG ratio of 1.24 right now. 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 1.63 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 112, which puts it in the top 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $401.58 in the latest trading session, marking a +1.68% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the chipmaker had gained 11.25% over the past month. This has outpaced the Computer and Technology sector's gain of 7.04% and the S&P 500's gain of 7.53% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be December 10, 2020. The company is expected to report EPS of $6.24, up 15.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, up 11.11% from the prior-year quarter.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 15.62. For comparison, its industry has an average Forward P/E of 28.2, which means AVGO is trading at a discount to the group.
Investors should also note that AVGO has a PEG ratio of 1.24 right now. 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 1.63 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 112, which puts it in the top 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.