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Broadcom Inc. (AVGO) Stock Moves -1.09%: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $580.61 in the latest trading session, marking a -1.09% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.69%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the chipmaker had gained 1.58% over the past month, lagging the Computer and Technology sector's gain of 5.96% and the S&P 500's gain of 7.88% 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 $8.64, up 30.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.91 billion, up 19.62% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $35.49 per share and revenue of $31.96 billion. These results would represent year-over-year changes of +26.7% and +16.43%, respectively.
It is also important to note the recent changes to analyst estimates for Broadcom Inc.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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Broadcom Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 16.54. For comparison, its industry has an average Forward P/E of 17.8, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 1.14. 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 industry currently had an average PEG ratio of 1.29 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 100, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Broadcom Inc. (AVGO) Stock Moves -1.09%: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $580.61 in the latest trading session, marking a -1.09% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.69%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the chipmaker had gained 1.58% over the past month, lagging the Computer and Technology sector's gain of 5.96% and the S&P 500's gain of 7.88% 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 $8.64, up 30.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.91 billion, up 19.62% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $35.49 per share and revenue of $31.96 billion. These results would represent year-over-year changes of +26.7% and +16.43%, respectively.
It is also important to note the recent changes to analyst estimates for Broadcom Inc.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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Broadcom Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 16.54. For comparison, its industry has an average Forward P/E of 17.8, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 1.14. 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 industry currently had an average PEG ratio of 1.29 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 100, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.