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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $638.02, marking a +1.84% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 2.14%.
Coming into today, shares of the chipmaker had lost 2.34% in the past month. In that same time, the Computer and Technology sector gained 4.01%, while the S&P 500 gained 5.1%.
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.
It is also important to note the recent changes to analyst estimates for Broadcom Inc.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.
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, 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 sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 15.14. This represents a discount compared to its industry's average Forward P/E of 19.36.
Investors should also note that AVGO has a PEG ratio of 1.15 right now. 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 3.03 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 114, putting it in the top 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $638.02, marking a +1.84% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 2.14%.
Coming into today, shares of the chipmaker had lost 2.34% in the past month. In that same time, the Computer and Technology sector gained 4.01%, while the S&P 500 gained 5.1%.
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.
It is also important to note the recent changes to analyst estimates for Broadcom Inc.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.
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, 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 sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 15.14. This represents a discount compared to its industry's average Forward P/E of 19.36.
Investors should also note that AVGO has a PEG ratio of 1.15 right now. 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 3.03 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 114, putting it in the top 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.