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) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $476.33, marking a -0.56% move from the previous day. This move lagged the S&P 500's daily gain of 0.2%.
Coming into today, shares of the chipmaker had gained 2.65% in the past month. In that same time, the Computer and Technology sector gained 1.57%, while the S&P 500 gained 3.28%.
AVGO will be looking to display strength as it nears its next earnings release. In that report, analysts expect AVGO to post earnings of $6.88 per share. This would mark year-over-year growth of 27.41%. Meanwhile, our latest consensus estimate is calling for revenue of $6.76 billion, up 16.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $27.58 per share and revenue of $27.24 billion, which would represent changes of +24.46% and +14.05%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO currently has a Zacks Rank of #2 (Buy).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 17.37. Its industry sports an average Forward P/E of 18.15, so we one might conclude that AVGO is trading at a discount comparatively.
Also, we should mention that AVGO has a PEG ratio of 1.16. 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. AVGO's industry had an average PEG ratio of 1.49 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 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadcom Inc. (AVGO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $476.33, marking a -0.56% move from the previous day. This move lagged the S&P 500's daily gain of 0.2%.
Coming into today, shares of the chipmaker had gained 2.65% in the past month. In that same time, the Computer and Technology sector gained 1.57%, while the S&P 500 gained 3.28%.
AVGO will be looking to display strength as it nears its next earnings release. In that report, analysts expect AVGO to post earnings of $6.88 per share. This would mark year-over-year growth of 27.41%. Meanwhile, our latest consensus estimate is calling for revenue of $6.76 billion, up 16.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $27.58 per share and revenue of $27.24 billion, which would represent changes of +24.46% and +14.05%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO currently has a Zacks Rank of #2 (Buy).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 17.37. Its industry sports an average Forward P/E of 18.15, so we one might conclude that AVGO is trading at a discount comparatively.
Also, we should mention that AVGO has a PEG ratio of 1.16. 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. AVGO's industry had an average PEG ratio of 1.49 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 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.