Back to top

Image: Bigstock

Broadcom Inc. (AVGO) Stock Moves -1.89%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $553.68, marking a -1.89% move from the previous day. This change was narrower than the S&P 500's 1.9% loss on the day. Elsewhere, the Dow lost 1.86%, while the tech-heavy Nasdaq added 0.31%.

Coming into today, shares of the chipmaker had gained 6.87% in the past month. In that same time, the Computer and Technology sector gained 1.95%, while the S&P 500 gained 1.2%.

Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. This is expected to be December 9, 2021. On that day, Broadcom Inc. is projected to report earnings of $7.75 per share, which would represent year-over-year growth of 22.05%. Our most recent consensus estimate is calling for quarterly revenue of $7.35 billion, up 13.7% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Broadcom Inc.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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 18.2 right now. Its industry sports an average Forward P/E of 23.98, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.

Meanwhile, AVGO's PEG ratio is currently 1.23. 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 1.54 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 42, which puts it in the top 17% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Broadcom Inc. (AVGO) - free report >>

Published in