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Broadcom Inc. (AVGO) Exceeds Market Returns: Some Facts to Consider

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Broadcom Inc. (AVGO - Free Report) closed the latest trading day at $995.71, indicating a +1.84% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1.13%.

The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on December 7, 2023. The company is expected to report EPS of $10.96, up 4.88% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $9.28 billion, indicating a 3.92% increase compared to the same quarter of the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 21.31 right now. This denotes a discount relative to the industry's average Forward P/E of 26.38.

Meanwhile, AVGO's PEG ratio is currently 1.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors was holding an average PEG ratio of 4.2 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 190, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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