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Broadcom and RH Brands have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 22, 2026 – Zacks Equity Research shares Broadcom (AVGO - Free Report) as the Bull of the Day and RH (RH) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple (AAPL - Free Report) , Dell Technologies (DELL - Free Report) and HP (HPQ - Free Report) .
Broadcom, one of the world’s preeminent semiconductor companies, stands out as one of the most compelling opportunities in the stock market today. Despite its nearly $2 trillion valuation, the company still trades at a discount to its growth outlook, with upward-trending earnings revisions supporting a Zacks Rank #1 (Strong Buy) rating. At the same time, shares continue to exhibit strong price momentum, sitting just below record highs.
While Nvidia has established itself as the leader in general-purpose AI GPUs, Broadcom has emerged as the go-to developer of custom AI accelerators (XPUs) for hyperscalers building their own silicon. The company now counts six major customers, including Alphabet, Meta Platforms, and OpenAI.
This positioning is driving a sharp acceleration in growth. Broadcom’s AI-related revenue has expanded from roughly 15% of total sales just two years ago to approximately 44% today, with the segment growing 106% year-over-year in the most recent quarter. The company has also disclosed a $73 billion AI-specific order backlog, while management has outlined a path toward $100 billion in AI revenue by 2027.
Broadcom’s execution has been equally impressive over the long term. The stock has compounded at an annual rate of 39% over the past decade and gained more than 140% over the last 12 months alone. Below, we break down why this exceptional growth trajectory is likely to continue, and why shares can still be owned at a reasonable valuation, with additional upside catalysts ahead.
Broadcom Shares Gain on Earnings Upgrades
As noted, Broadcom continues to deliver exceptional growth, particularly given its scale. Sales are projected to increase more than 60% this year and nearly 50% next year, while earnings are expected to climb 68% this year and 55% next year.
Despite this rapid expansion, the valuation remains reasonable. Shares trade at roughly 35x forward earnings, while long-term EPS growth is projected at 48.6% annually, resulting in a PEG ratio of just 0.72, suggesting the stock is still trading at a discount relative to its growth profile.
The company’s top Zacks Rank is supported by strong upward momentum in analyst sentiment. Earnings estimates have been revised higher across all timeframes, with current year projections rising nearly 14% over the past 60 days and next year estimates up nearly 25%. Notably, revisions have continued as recently as the past week, signaling that analysts remain increasingly bullish on the stock.
AVGO Stock on the Verge of a Breakout
With thematic, growth, and valuation catalysts firmly in place, the final box to check is technicals.
Broadcom stock has been consolidating for nearly nine months. During that period, sentiment toward mega-cap tech shifted, as investors questioned the sustainability of AI capex and stretched valuations. As a result, much of the group traded sideways to lower.
However, that consolidation has served a purpose. Valuations have reset, while underlying fundamentals have continued to strengthen. AI spending has not slowed and has even accelerated, undermining the bearish narrative.
More recently, with geopolitical concerns in the Middle East fading into the background, leadership stocks like Broadcom have regained momentum. Many are now breaking out from extended bases and moving back toward record highs.
Technically, AVGO has already broken out from a nested base and is now approaching its highs. Following a strong upward move, the stock has formed a tight bull flag continuation pattern over the past several sessions.
From here, the setup is constructive. A breakout would likely lead to a test of all-time highs, while any short-term pullback could present a secondary entry opportunity within an otherwise strong uptrend.
Should Investors Buy Shares in AVGO?
Broadcom checks nearly every box investors look for: powerful secular tailwinds, elite growth at scale, upward earnings revisions, and a constructive technical setup.
Despite its size and strong recent performance, the stock still trades at a reasonable valuation relative to its growth, with AI demand continuing to accelerate and visibility supported by a massive backlog.
With shares breaking out and momentum returning to the group, AVGO appears well-positioned to make another move higher. For investors looking to gain exposure to the AI buildout beyond traditional GPU leaders, Broadcom remains a compelling buy.
RH has been under pressure for several years, as a challenging housing backdrop has weighed heavily on demand for high-end home furnishings. With mortgage rates elevated and housing turnover subdued, the company’s core customer base has pulled back, leading to stalled revenue growth and limited visibility into a near-term rebound.
That fundamental weakness has been reflected in earnings expectations. Estimates have been revised sharply lower, with profitability coming under pressure as the company continues to invest in its brand, galleries, and long-term positioning despite softer demand. As a result, the stock has significantly underperformed not only the broader market, but also an already weak housing and home-related sector.
Looking ahead, the path forward remains uncertain. RH is still highly tied to a recovery in housing activity and discretionary spending, both of which remain constrained in the current environment. At the same time, ongoing estimate revisions suggest analysts are not yet seeing a clear inflection point.
With limited near-term catalysts, continued earnings pressure, and a weak technical backdrop, RH remains a stock investors should approach with caution or avoid altogether.
RH Shares Fall on Earnings Downgrades
Earnings revisions for RH have turned decisively negative, reinforcing the weak fundamental backdrop. Estimates have been lowered across the board, with current quarter projections flipping to a loss within the past week. Full year expectations have been cut by roughly 36%, while next year’s estimates are down more than 20%.
This broad deterioration has pushed the stock to a Zacks Rank #5 (Strong Sell), reflecting both declining earnings visibility and worsening analyst sentiment.
At the same time, valuation offers little support. Shares trade at approximately 21.8x forward earnings, while long-term EPS growth is projected at just 10.2% annually. That mismatch, premium multiple against slowing growth and negative revisions, remains difficult to justify, particularly given the uncertain demand environment.
Until estimates stabilize and a clearer recovery in housing-driven demand emerges, the risk/reward profile remains unfavorable.
Should Investors Avoid RH Stock?
RH faces a difficult combination of weakening fundamentals, negative earnings revisions, and an uncertain macro backdrop tied closely to housing and discretionary spending. With estimates still moving lower and no clear catalyst for a near-term turnaround, visibility remains limited.
At the same time, the stock’s valuation does not fully reflect these risks, leaving shares vulnerable to further downside if conditions fail to improve.
Until there is clear evidence of stabilization in both the housing market and RH’s earnings outlook, investors are likely better served remaining on the sidelines.
Additional content:
Apple CEO Transition Signals Stability, AI Remains Key Challenge
Apple announced on Monday that Tim Cook will transition to Executive Chairman while long-time hardware leader John Ternus will take over as CEO from September 2026. This move, part of a well-planned succession strategy, reduces uncertainty — often a key overhang for mega-cap stocks — and reinforces continuity given Ternus’ 25-year tenure at Apple.
The transition appears low-risk. Cook will remain actively involved at the board level, while Ternus brings deep product expertise, having overseen major innovations across iPhone, Mac and wearables. Equally important is the appointment of Johny Srouji as Chief Hardware Officer, consolidating Apple’s silicon and hardware strategy. Apple’s in-house chip ecosystem has been a major competitive moat, driving performance gains and margin expansion.
Nevertheless, Ternus is expected to face the heat related to Apple’s AI strategy that has been lagging compared with peers Microsoft and Google. Apart from stiff competition in the smartphone and personal computer (PC) domains, AAPL shares have suffered from issues with its AI initiatives, with the postponement of several features, which has been a concern for investors.
Apple’s AI ambitions comprise Siri with personal context, onscreen awareness, and app actions, in addition to including broader Apple Intelligence features across devices. Ternus’ first job apparently looks at improving execution, which Apple has lagged in its AI endeavors.
Apple Faces Stiff Competition
AAPL is facing stiff competition from the likes of Lenovo, Dell Technologies and HP in the PC domain. Per Gartner, worldwide PC shipments totaled 62.8 million units in the first quarter of 2026, up 4% year over year. Lenovo led with 26.5% market share, trailed by HP and Dell Technologies with 19.3% and 16.5%, respectively. Apple had a 10.6% market share.
However, HP’s forecast of a decline in fiscal 2026 PC shipments, with only slight revenue growth coming from higher specifications, not from more buyers, raises concerns about its near-term growth prospects. Dell Technologies expects the Client Solutions Group segment that offers branded PCs, including notebooks, desktops and workstations, to climb 1% year over year in fiscal 2027.
The smartphone segment is chock-a-block with competition from Chinese vendors, as well as Samsung and Google Pixel. Per Counterpoint’s latest data, global smartphone shipments declined 6% year over year in the first quarter of 2026, with Apple leading with 21% market share and shipments growing 5% year over year, driven by strong iPhone 17 demand and improved performance in China. Samsung’s shipments declined 6% year over year with 20% market share.
Apple shares have inched up 0.4% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 6%.
The AAPL stock is trading at a premium, with a forward 12-month price/earnings of 30.52X compared with the broader sector’s 24.96X. AAPL has a Value Score of F.
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.49 per share, up by a nickel over the past 30 days, suggesting 13.8% year-over-year growth.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Broadcom and RH Brands have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 22, 2026 – Zacks Equity Research shares Broadcom (AVGO - Free Report) as the Bull of the Day and RH (RH) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple (AAPL - Free Report) , Dell Technologies (DELL - Free Report) and HP (HPQ - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
Broadcom, one of the world’s preeminent semiconductor companies, stands out as one of the most compelling opportunities in the stock market today. Despite its nearly $2 trillion valuation, the company still trades at a discount to its growth outlook, with upward-trending earnings revisions supporting a Zacks Rank #1 (Strong Buy) rating. At the same time, shares continue to exhibit strong price momentum, sitting just below record highs.
While Nvidia has established itself as the leader in general-purpose AI GPUs, Broadcom has emerged as the go-to developer of custom AI accelerators (XPUs) for hyperscalers building their own silicon. The company now counts six major customers, including Alphabet, Meta Platforms, and OpenAI.
This positioning is driving a sharp acceleration in growth. Broadcom’s AI-related revenue has expanded from roughly 15% of total sales just two years ago to approximately 44% today, with the segment growing 106% year-over-year in the most recent quarter. The company has also disclosed a $73 billion AI-specific order backlog, while management has outlined a path toward $100 billion in AI revenue by 2027.
Broadcom’s execution has been equally impressive over the long term. The stock has compounded at an annual rate of 39% over the past decade and gained more than 140% over the last 12 months alone. Below, we break down why this exceptional growth trajectory is likely to continue, and why shares can still be owned at a reasonable valuation, with additional upside catalysts ahead.
Broadcom Shares Gain on Earnings Upgrades
As noted, Broadcom continues to deliver exceptional growth, particularly given its scale. Sales are projected to increase more than 60% this year and nearly 50% next year, while earnings are expected to climb 68% this year and 55% next year.
Despite this rapid expansion, the valuation remains reasonable. Shares trade at roughly 35x forward earnings, while long-term EPS growth is projected at 48.6% annually, resulting in a PEG ratio of just 0.72, suggesting the stock is still trading at a discount relative to its growth profile.
The company’s top Zacks Rank is supported by strong upward momentum in analyst sentiment. Earnings estimates have been revised higher across all timeframes, with current year projections rising nearly 14% over the past 60 days and next year estimates up nearly 25%. Notably, revisions have continued as recently as the past week, signaling that analysts remain increasingly bullish on the stock.
AVGO Stock on the Verge of a Breakout
With thematic, growth, and valuation catalysts firmly in place, the final box to check is technicals.
Broadcom stock has been consolidating for nearly nine months. During that period, sentiment toward mega-cap tech shifted, as investors questioned the sustainability of AI capex and stretched valuations. As a result, much of the group traded sideways to lower.
However, that consolidation has served a purpose. Valuations have reset, while underlying fundamentals have continued to strengthen. AI spending has not slowed and has even accelerated, undermining the bearish narrative.
More recently, with geopolitical concerns in the Middle East fading into the background, leadership stocks like Broadcom have regained momentum. Many are now breaking out from extended bases and moving back toward record highs.
Technically, AVGO has already broken out from a nested base and is now approaching its highs. Following a strong upward move, the stock has formed a tight bull flag continuation pattern over the past several sessions.
From here, the setup is constructive. A breakout would likely lead to a test of all-time highs, while any short-term pullback could present a secondary entry opportunity within an otherwise strong uptrend.
Should Investors Buy Shares in AVGO?
Broadcom checks nearly every box investors look for: powerful secular tailwinds, elite growth at scale, upward earnings revisions, and a constructive technical setup.
Despite its size and strong recent performance, the stock still trades at a reasonable valuation relative to its growth, with AI demand continuing to accelerate and visibility supported by a massive backlog.
With shares breaking out and momentum returning to the group, AVGO appears well-positioned to make another move higher. For investors looking to gain exposure to the AI buildout beyond traditional GPU leaders, Broadcom remains a compelling buy.
Bear of the Day:
RH has been under pressure for several years, as a challenging housing backdrop has weighed heavily on demand for high-end home furnishings. With mortgage rates elevated and housing turnover subdued, the company’s core customer base has pulled back, leading to stalled revenue growth and limited visibility into a near-term rebound.
That fundamental weakness has been reflected in earnings expectations. Estimates have been revised sharply lower, with profitability coming under pressure as the company continues to invest in its brand, galleries, and long-term positioning despite softer demand. As a result, the stock has significantly underperformed not only the broader market, but also an already weak housing and home-related sector.
Looking ahead, the path forward remains uncertain. RH is still highly tied to a recovery in housing activity and discretionary spending, both of which remain constrained in the current environment. At the same time, ongoing estimate revisions suggest analysts are not yet seeing a clear inflection point.
With limited near-term catalysts, continued earnings pressure, and a weak technical backdrop, RH remains a stock investors should approach with caution or avoid altogether.
RH Shares Fall on Earnings Downgrades
Earnings revisions for RH have turned decisively negative, reinforcing the weak fundamental backdrop. Estimates have been lowered across the board, with current quarter projections flipping to a loss within the past week. Full year expectations have been cut by roughly 36%, while next year’s estimates are down more than 20%.
This broad deterioration has pushed the stock to a Zacks Rank #5 (Strong Sell), reflecting both declining earnings visibility and worsening analyst sentiment.
At the same time, valuation offers little support. Shares trade at approximately 21.8x forward earnings, while long-term EPS growth is projected at just 10.2% annually. That mismatch, premium multiple against slowing growth and negative revisions, remains difficult to justify, particularly given the uncertain demand environment.
Until estimates stabilize and a clearer recovery in housing-driven demand emerges, the risk/reward profile remains unfavorable.
Should Investors Avoid RH Stock?
RH faces a difficult combination of weakening fundamentals, negative earnings revisions, and an uncertain macro backdrop tied closely to housing and discretionary spending. With estimates still moving lower and no clear catalyst for a near-term turnaround, visibility remains limited.
At the same time, the stock’s valuation does not fully reflect these risks, leaving shares vulnerable to further downside if conditions fail to improve.
Until there is clear evidence of stabilization in both the housing market and RH’s earnings outlook, investors are likely better served remaining on the sidelines.
Additional content:
Apple CEO Transition Signals Stability, AI Remains Key Challenge
Apple announced on Monday that Tim Cook will transition to Executive Chairman while long-time hardware leader John Ternus will take over as CEO from September 2026. This move, part of a well-planned succession strategy, reduces uncertainty — often a key overhang for mega-cap stocks — and reinforces continuity given Ternus’ 25-year tenure at Apple.
The transition appears low-risk. Cook will remain actively involved at the board level, while Ternus brings deep product expertise, having overseen major innovations across iPhone, Mac and wearables. Equally important is the appointment of Johny Srouji as Chief Hardware Officer, consolidating Apple’s silicon and hardware strategy. Apple’s in-house chip ecosystem has been a major competitive moat, driving performance gains and margin expansion.
Nevertheless, Ternus is expected to face the heat related to Apple’s AI strategy that has been lagging compared with peers Microsoft and Google. Apart from stiff competition in the smartphone and personal computer (PC) domains, AAPL shares have suffered from issues with its AI initiatives, with the postponement of several features, which has been a concern for investors.
Apple’s AI ambitions comprise Siri with personal context, onscreen awareness, and app actions, in addition to including broader Apple Intelligence features across devices. Ternus’ first job apparently looks at improving execution, which Apple has lagged in its AI endeavors.
Apple Faces Stiff Competition
AAPL is facing stiff competition from the likes of Lenovo, Dell Technologies and HP in the PC domain. Per Gartner, worldwide PC shipments totaled 62.8 million units in the first quarter of 2026, up 4% year over year. Lenovo led with 26.5% market share, trailed by HP and Dell Technologies with 19.3% and 16.5%, respectively. Apple had a 10.6% market share.
However, HP’s forecast of a decline in fiscal 2026 PC shipments, with only slight revenue growth coming from higher specifications, not from more buyers, raises concerns about its near-term growth prospects. Dell Technologies expects the Client Solutions Group segment that offers branded PCs, including notebooks, desktops and workstations, to climb 1% year over year in fiscal 2027.
The smartphone segment is chock-a-block with competition from Chinese vendors, as well as Samsung and Google Pixel. Per Counterpoint’s latest data, global smartphone shipments declined 6% year over year in the first quarter of 2026, with Apple leading with 21% market share and shipments growing 5% year over year, driven by strong iPhone 17 demand and improved performance in China. Samsung’s shipments declined 6% year over year with 20% market share.
AAPL’s Share Price Performance, Valuation & Estimates
Apple shares have inched up 0.4% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 6%.
The AAPL stock is trading at a premium, with a forward 12-month price/earnings of 30.52X compared with the broader sector’s 24.96X. AAPL has a Value Score of F.
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.49 per share, up by a nickel over the past 30 days, suggesting 13.8% year-over-year growth.
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.