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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 $585.03, moving +0.58% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq lost 3.22%.
Prior to today's trading, shares of the chipmaker had gained 5.29% over the past month. This has lagged the Computer and Technology sector's gain of 11.67% and outpaced the S&P 500's gain of 4.64% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. In that report, analysts expect Broadcom Inc. to post earnings of $10.15 per share. This would mark year-over-year growth of 20.98%. Our most recent consensus estimate is calling for quarterly revenue of $8.9 billion, up 15.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.44 per share and revenue of $34.9 billion. These totals would mark changes of +7.44% and +5.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Broadcom Inc.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.22% higher. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 14.38. Its industry sports an average Forward P/E of 17.26, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Meanwhile, AVGO's PEG ratio is currently 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 3.05 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.