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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $639.80 in the latest trading session, marking a +1.37% move from the prior day. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.74%.
Coming into today, shares of the chipmaker had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 3.72%, while the S&P 500 gained 0.85%.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. This is expected to be June 1, 2023. 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 $41.21 per share and revenue of $35.39 billion. These totals would mark changes of +9.48% and +6.58%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Broadcom Inc. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 15.31. This represents a discount compared to its industry's average Forward P/E of 18.6.
We can also see that AVGO currently has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 3.72 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $639.80 in the latest trading session, marking a +1.37% move from the prior day. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.74%.
Coming into today, shares of the chipmaker had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 3.72%, while the S&P 500 gained 0.85%.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. This is expected to be June 1, 2023. 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 $41.21 per share and revenue of $35.39 billion. These totals would mark changes of +9.48% and +6.58%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Broadcom Inc. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 15.31. This represents a discount compared to its industry's average Forward P/E of 18.6.
We can also see that AVGO currently has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 3.72 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.