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Broadcom Inc. (AVGO) Rises As Market Takes a Dip: Key Facts
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Broadcom Inc. (AVGO - Free Report) closed the latest trading day at $1,243.10, indicating a +1.53% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.2%.
The chipmaker's stock has climbed by 16.68% in the past month, exceeding the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $10.61, reflecting a 2.71% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.27 billion, reflecting a 26.37% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $47.57 per share and revenue of $50.07 billion, which would represent changes of +12.59% and +39.8%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 25.74. This expresses a discount compared to the average Forward P/E of 29 of its industry.
It's also important to note that AVGO currently trades at a PEG ratio of 2.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.73.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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Broadcom Inc. (AVGO) Rises As Market Takes a Dip: Key Facts
Broadcom Inc. (AVGO - Free Report) closed the latest trading day at $1,243.10, indicating a +1.53% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.2%.
The chipmaker's stock has climbed by 16.68% in the past month, exceeding the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $10.61, reflecting a 2.71% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.27 billion, reflecting a 26.37% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $47.57 per share and revenue of $50.07 billion, which would represent changes of +12.59% and +39.8%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 25.74. This expresses a discount compared to the average Forward P/E of 29 of its industry.
It's also important to note that AVGO currently trades at a PEG ratio of 2.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.73.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.