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Broadcom Inc. (AVGO) Gains But Lags Market: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $435.37, moving +1.94% from the previous trading session. This change lagged the S&P 500's 2.65% gain on the day. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Heading into today, shares of the chipmaker had lost 15.01% over the past month, lagging the Computer and Technology sector's loss of 12.03% and the S&P 500's loss of 8.99% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. On that day, Broadcom Inc. is projected to report earnings of $10.29 per share, which would represent year-over-year growth of 31.75%. Meanwhile, our latest consensus estimate is calling for revenue of $8.9 billion, up 20.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $37.44 per share and revenue of $33.17 billion. These totals would mark changes of +33.67% and +20.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Broadcom Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 11.41. This represents a discount compared to its industry's average Forward P/E of 11.54.
Meanwhile, AVGO's PEG ratio is currently 0.76. 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 0.85 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 173, putting it in the bottom 32% 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.
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Broadcom Inc. (AVGO) Gains But Lags Market: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $435.37, moving +1.94% from the previous trading session. This change lagged the S&P 500's 2.65% gain on the day. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Heading into today, shares of the chipmaker had lost 15.01% over the past month, lagging the Computer and Technology sector's loss of 12.03% and the S&P 500's loss of 8.99% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. On that day, Broadcom Inc. is projected to report earnings of $10.29 per share, which would represent year-over-year growth of 31.75%. Meanwhile, our latest consensus estimate is calling for revenue of $8.9 billion, up 20.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $37.44 per share and revenue of $33.17 billion. These totals would mark changes of +33.67% and +20.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Broadcom Inc. is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 11.41. This represents a discount compared to its industry's average Forward P/E of 11.54.
Meanwhile, AVGO's PEG ratio is currently 0.76. 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 0.85 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 173, putting it in the bottom 32% 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.