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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $888.34 in the latest trading session, marking a -1.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.68%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the chipmaker had gained 6.34% over the past month, outpacing the Computer and Technology sector's gain of 3.15% and the S&P 500's gain of 3.58% 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 $10.42 per share, which would represent year-over-year growth of 7.09%. Meanwhile, our latest consensus estimate is calling for revenue of $8.86 billion, up 4.64% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $42.08 per share and revenue of $35.76 billion, which would represent changes of +11.8% and +7.69%, respectively, from the prior year.
It is also important to note the 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 21.42 right now. Its industry sports an average Forward P/E of 28.31, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Meanwhile, AVGO's PEG ratio is currently 1.58. 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. AVGO's industry had an average PEG ratio of 4.26 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $888.34 in the latest trading session, marking a -1.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.68%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the chipmaker had gained 6.34% over the past month, outpacing the Computer and Technology sector's gain of 3.15% and the S&P 500's gain of 3.58% 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 $10.42 per share, which would represent year-over-year growth of 7.09%. Meanwhile, our latest consensus estimate is calling for revenue of $8.86 billion, up 4.64% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $42.08 per share and revenue of $35.76 billion, which would represent changes of +11.8% and +7.69%, respectively, from the prior year.
It is also important to note the 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 21.42 right now. Its industry sports an average Forward P/E of 28.31, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Meanwhile, AVGO's PEG ratio is currently 1.58. 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. AVGO's industry had an average PEG ratio of 4.26 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.