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Broadcom Inc. (AVGO) Surpasses Market Returns: Some Facts Worth Knowing
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Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $379.66, demonstrating a +2.18% change from the preceding day's closing price. This change outpaced the S&P 500's 1.02% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.23%.
Heading into today, shares of the chipmaker had gained 15.33% over the past month, outpacing the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Broadcom Inc. in its upcoming earnings disclosure. On that day, Broadcom Inc. is projected to report earnings of $2.38 per share, which would represent year-over-year growth of 50.63%. Our most recent consensus estimate is calling for quarterly revenue of $22.02 billion, up 46.76% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.41 per share and a revenue of $102.48 billion, signifying shifts of +67.3% and +60.4%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Broadcom Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.36% upward. Broadcom Inc. presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 32.57. This valuation marks a discount compared to its industry average Forward P/E of 39.5.
Investors should also note that AVGO has a PEG ratio of 0.67 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AVGO's industry had an average PEG ratio of 2.26 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO) Surpasses Market Returns: Some Facts Worth Knowing
Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $379.66, demonstrating a +2.18% change from the preceding day's closing price. This change outpaced the S&P 500's 1.02% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.23%.
Heading into today, shares of the chipmaker had gained 15.33% over the past month, outpacing the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Broadcom Inc. in its upcoming earnings disclosure. On that day, Broadcom Inc. is projected to report earnings of $2.38 per share, which would represent year-over-year growth of 50.63%. Our most recent consensus estimate is calling for quarterly revenue of $22.02 billion, up 46.76% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.41 per share and a revenue of $102.48 billion, signifying shifts of +67.3% and +60.4%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Broadcom Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.36% upward. Broadcom Inc. presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 32.57. This valuation marks a discount compared to its industry average Forward P/E of 39.5.
Investors should also note that AVGO has a PEG ratio of 0.67 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AVGO's industry had an average PEG ratio of 2.26 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.