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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 $634.50, moving +0.34% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the chipmaker had lost 0.7% over the past month, lagging the Computer and Technology sector's gain of 4.02% and the S&P 500's gain of 6.23% 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 $10.13, up 11.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.71 billion, up 7.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $41.38 per share and revenue of $35.39 billion. These totals would mark changes of +9.94% and +6.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 15.28. This valuation marks a discount compared to its industry's average Forward P/E of 19.15.
We can also see that AVGO currently has a PEG ratio of 1.16. 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 3.12 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 79, which puts it in the top 32% 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.
To follow AVGO in the coming trading sessions, be sure to utilize 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 $634.50, moving +0.34% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the chipmaker had lost 0.7% over the past month, lagging the Computer and Technology sector's gain of 4.02% and the S&P 500's gain of 6.23% 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 $10.13, up 11.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.71 billion, up 7.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $41.38 per share and revenue of $35.39 billion. These totals would mark changes of +9.94% and +6.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 15.28. This valuation marks a discount compared to its industry's average Forward P/E of 19.15.
We can also see that AVGO currently has a PEG ratio of 1.16. 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 3.12 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 79, which puts it in the top 32% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.