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Broadcom Inc. (AVGO) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $390.24, marking a +2.42% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.31%.

The chipmaker's shares have seen an increase of 7.15% over the last month, surpassing the Computer and Technology sector's gain of 1.64% and the S&P 500's gain of 1.33%.

Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company plans to announce its earnings on December 11, 2025. The company is expected to report EPS of $1.87, up 31.69% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.5 billion, indicating a 24.53% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $63.37 billion, which would represent changes of +37.99% and 0%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Broadcom Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.72% rise in the Zacks Consensus EPS estimate. At present, Broadcom Inc. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Broadcom Inc. is presently being traded at a Forward P/E ratio of 41.54. This denotes a premium relative to the industry average Forward P/E of 34.6.

We can also see that AVGO currently has a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AVGO's industry had an average PEG ratio of 1.98 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.

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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