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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 the most recent trading day at $621.16, moving +0.32% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the chipmaker had lost 1.98% over the past month, outpacing the Computer and Technology sector's loss of 5.82% and lagging the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. The company is expected to report EPS of $8.15, up 23.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, up 14.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.03 per share and revenue of $30.63 billion, which would represent changes of +17.92% and +11.58%, respectively, from the prior year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 has moved 7.16% higher. Broadcom Inc. is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 18.75. This valuation marks a discount compared to its industry's average Forward P/E of 22.49.
Also, we should mention that AVGO has a PEG ratio of 1.29. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $621.16, moving +0.32% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the chipmaker had lost 1.98% over the past month, outpacing the Computer and Technology sector's loss of 5.82% and lagging the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. The company is expected to report EPS of $8.15, up 23.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, up 14.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.03 per share and revenue of $30.63 billion, which would represent changes of +17.92% and +11.58%, respectively, from the prior year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 has moved 7.16% higher. Broadcom Inc. is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 18.75. This valuation marks a discount compared to its industry's average Forward P/E of 22.49.
Also, we should mention that AVGO has a PEG ratio of 1.29. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.