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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 $832.99 in the latest trading session, marking a -1.13% move from the prior day. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 1.15%.
Heading into today, shares of the chipmaker had lost 6.74% over the past month, lagging the Computer and Technology sector's loss of 3.9% and the S&P 500's loss of 1.4% in that time.
Broadcom Inc. will be looking to display strength as it nears 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 should also note any recent changes to analyst estimates for Broadcom Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 20.02. This valuation marks a discount compared to its industry's average Forward P/E of 27.02.
We can also see that AVGO currently has a PEG ratio of 1.48. 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. The Electronics - Semiconductors was holding an average PEG ratio of 4.14 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 165, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $832.99 in the latest trading session, marking a -1.13% move from the prior day. This move lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 1.15%.
Heading into today, shares of the chipmaker had lost 6.74% over the past month, lagging the Computer and Technology sector's loss of 3.9% and the S&P 500's loss of 1.4% in that time.
Broadcom Inc. will be looking to display strength as it nears 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 should also note any recent changes to analyst estimates for Broadcom Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 20.02. This valuation marks a discount compared to its industry's average Forward P/E of 27.02.
We can also see that AVGO currently has a PEG ratio of 1.48. 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. The Electronics - Semiconductors was holding an average PEG ratio of 4.14 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 165, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.