We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $466.35, moving -1.17% from the previous trading session. This change lagged the S&P 500's daily loss of 0.02%.
Heading into today, shares of the chipmaker had lost 0.16% over the past month, lagging the Computer and Technology sector's gain of 10.8% and the S&P 500's gain of 5.48% 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 $6.44, up 25.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.51 billion, up 13.31% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $26.91 per share and revenue of $26.95 billion. These results would represent year-over-year changes of +21.44% and +12.81%, respectively.
It is also important to note the recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AVGO is currently trading at a Forward P/E ratio of 17.53. This valuation marks a discount compared to its industry's average Forward P/E of 20.66.
It is also worth noting that AVGO currently has a PEG ratio of 0.8. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.92 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 111, which puts it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $466.35, moving -1.17% from the previous trading session. This change lagged the S&P 500's daily loss of 0.02%.
Heading into today, shares of the chipmaker had lost 0.16% over the past month, lagging the Computer and Technology sector's gain of 10.8% and the S&P 500's gain of 5.48% 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 $6.44, up 25.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.51 billion, up 13.31% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $26.91 per share and revenue of $26.95 billion. These results would represent year-over-year changes of +21.44% and +12.81%, respectively.
It is also important to note the recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AVGO is currently trading at a Forward P/E ratio of 17.53. This valuation marks a discount compared to its industry's average Forward P/E of 20.66.
It is also worth noting that AVGO currently has a PEG ratio of 0.8. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.92 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 111, which puts it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.