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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Broadcom Inc. (AVGO - Free Report) closed at $542.37 in the latest trading session, marking a +0.99% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.65%.
Heading into today, shares of the chipmaker had gained 10.64% over the past month, outpacing the Computer and Technology sector's gain of 6% and the S&P 500's gain of 6.38% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release. In that report, analysts expect AVGO to post earnings of $7.75 per share. This would mark year-over-year growth of 22.05%. Meanwhile, our latest consensus estimate is calling for revenue of $7.35 billion, up 13.7% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 17.32. Its industry sports an average Forward P/E of 24.03, so we one might conclude that AVGO is trading at a discount comparatively.
It is also worth noting that AVGO currently has a PEG ratio of 1.15. 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. AVGO's industry had an average PEG ratio of 1.66 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 61, putting it in the top 25% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $542.37 in the latest trading session, marking a +0.99% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.65%.
Heading into today, shares of the chipmaker had gained 10.64% over the past month, outpacing the Computer and Technology sector's gain of 6% and the S&P 500's gain of 6.38% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release. In that report, analysts expect AVGO to post earnings of $7.75 per share. This would mark year-over-year growth of 22.05%. Meanwhile, our latest consensus estimate is calling for revenue of $7.35 billion, up 13.7% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 17.32. Its industry sports an average Forward P/E of 24.03, so we one might conclude that AVGO is trading at a discount comparatively.
It is also worth noting that AVGO currently has a PEG ratio of 1.15. 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. AVGO's industry had an average PEG ratio of 1.66 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 61, putting it in the top 25% 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.