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Why Broadcom Inc. (AVGO) Dipped More Than Broader Market Today
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In the latest close session, Broadcom Inc. (AVGO - Free Report) was down 1.56% at $414.71. This change lagged the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a loss of 1.13%, and the technology-centric Nasdaq decreased by 0.19%.
The chipmaker's stock has climbed by 33.93% in the past month, exceeding the Computer and Technology sector's gain of 18.71% and the S&P 500's gain of 10.02%.
Investors will be eagerly watching for the performance of Broadcom Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $2.4, up 51.9% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $22.04 billion, indicating a 46.87% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.45 per share and revenue of $102.45 billion, which would represent changes of +67.89% and +60.37%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 1.06% higher. Broadcom Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 36.78. For comparison, its industry has an average Forward P/E of 44.71, which means Broadcom Inc. is trading at a discount to the group.
One should further note that AVGO currently holds a PEG ratio of 0.76. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.91.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Broadcom Inc. (AVGO) Dipped More Than Broader Market Today
In the latest close session, Broadcom Inc. (AVGO - Free Report) was down 1.56% at $414.71. This change lagged the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a loss of 1.13%, and the technology-centric Nasdaq decreased by 0.19%.
The chipmaker's stock has climbed by 33.93% in the past month, exceeding the Computer and Technology sector's gain of 18.71% and the S&P 500's gain of 10.02%.
Investors will be eagerly watching for the performance of Broadcom Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $2.4, up 51.9% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $22.04 billion, indicating a 46.87% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.45 per share and revenue of $102.45 billion, which would represent changes of +67.89% and +60.37%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 1.06% higher. Broadcom Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 36.78. For comparison, its industry has an average Forward P/E of 44.71, which means Broadcom Inc. is trading at a discount to the group.
One should further note that AVGO currently holds a PEG ratio of 0.76. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.91.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.