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Broadcom Inc. (AVGO) Stock Sinks As Market Gains: Here's Why
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Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $1,303.11, moving -0.55% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
Shares of the chipmaker have depreciated by 1.93% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.89% and the S&P 500's loss of 0.35%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's earnings report is expected on June 12, 2024. On that day, Broadcom Inc. is projected to report earnings of $10.70 per share, which would represent year-over-year growth of 3.68%. In the meantime, our current consensus estimate forecasts the revenue to be $11.95 billion, indicating a 36.87% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $46.95 per share and a revenue of $50.37 billion, representing changes of +11.12% and +40.61%, respectively, from the prior year.
It is also important to note the 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.98% lower within the past month. Broadcom Inc. presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 27.91 right now. This denotes a discount relative to the industry's average Forward P/E of 35.78.
Meanwhile, AVGO's PEG ratio is currently 2.04. 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 industry had an average PEG ratio of 3.07 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Stock Sinks As Market Gains: Here's Why
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $1,303.11, moving -0.55% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
Shares of the chipmaker have depreciated by 1.93% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.89% and the S&P 500's loss of 0.35%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's earnings report is expected on June 12, 2024. On that day, Broadcom Inc. is projected to report earnings of $10.70 per share, which would represent year-over-year growth of 3.68%. In the meantime, our current consensus estimate forecasts the revenue to be $11.95 billion, indicating a 36.87% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $46.95 per share and a revenue of $50.37 billion, representing changes of +11.12% and +40.61%, respectively, from the prior year.
It is also important to note the 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.98% lower within the past month. Broadcom Inc. presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 27.91 right now. This denotes a discount relative to the industry's average Forward P/E of 35.78.
Meanwhile, AVGO's PEG ratio is currently 2.04. 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 industry had an average PEG ratio of 3.07 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.