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Broadcom Inc. (AVGO) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $288.21, marking a +1.72% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the chipmaker witnessed a gain of 13.34% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.37%, and the S&P 500's gain of 5.35%.
The investment community will be paying close attention to the earnings performance of Broadcom Inc. in its upcoming release. The company's upcoming EPS is projected at $1.66, signifying a 33.87% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $15.82 billion, showing a 21.03% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.64 per share and a revenue of $62.73 billion, demonstrating changes of +36.34% and +21.62%, respectively, from the preceding year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Broadcom Inc. presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Broadcom Inc. is at present trading with a Forward P/E ratio of 42.7. This represents a premium compared to its industry average Forward P/E of 27.61.
It is also worth noting that AVGO currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.61 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 63, putting it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Broadcom Inc. (AVGO) Outperforms Broader Market: What You Need to Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $288.21, marking a +1.72% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the chipmaker witnessed a gain of 13.34% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.37%, and the S&P 500's gain of 5.35%.
The investment community will be paying close attention to the earnings performance of Broadcom Inc. in its upcoming release. The company's upcoming EPS is projected at $1.66, signifying a 33.87% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $15.82 billion, showing a 21.03% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.64 per share and a revenue of $62.73 billion, demonstrating changes of +36.34% and +21.62%, respectively, from the preceding year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Broadcom Inc. presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Broadcom Inc. is at present trading with a Forward P/E ratio of 42.7. This represents a premium compared to its industry average Forward P/E of 27.61.
It is also worth noting that AVGO currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.61 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 63, putting it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.