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Broadcom Inc. (AVGO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $842.90, marking a -0.92% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.12%.
Prior to today's trading, shares of the chipmaker had lost 4.41% over the past month. This has lagged the Computer and Technology sector's gain of 0.11% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release, which is expected to be August 31, 2023. 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%. Our most recent consensus estimate is calling for quarterly revenue of $8.86 billion, up 4.64% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $42.08 per share and revenue of $35.76 billion. These results would represent year-over-year changes of +11.8% and +7.69%, respectively.
Investors might also notice 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. 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.
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 has moved 0.04% higher. Broadcom Inc. is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 20.22 right now. Its industry sports an average Forward P/E of 27.3, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Meanwhile, AVGO's PEG ratio is currently 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AVGO's industry had an average PEG ratio of 4.16 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $842.90, marking a -0.92% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.12%.
Prior to today's trading, shares of the chipmaker had lost 4.41% over the past month. This has lagged the Computer and Technology sector's gain of 0.11% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release, which is expected to be August 31, 2023. 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%. Our most recent consensus estimate is calling for quarterly revenue of $8.86 billion, up 4.64% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $42.08 per share and revenue of $35.76 billion. These results would represent year-over-year changes of +11.8% and +7.69%, respectively.
Investors might also notice 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. 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.
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 has moved 0.04% higher. Broadcom Inc. is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 20.22 right now. Its industry sports an average Forward P/E of 27.3, so we one might conclude that Broadcom Inc. is trading at a discount comparatively.
Meanwhile, AVGO's PEG ratio is currently 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AVGO's industry had an average PEG ratio of 4.16 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.