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Why Broadcom Inc. (AVGO) Dipped More Than Broader Market Today
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Broadcom Inc. (AVGO - Free Report) closed at $384.05 in the latest trading session, marking a -3.98% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 1.55%.
Heading into today, shares of the chipmaker had gained 4.68% over the past month, outpacing the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's upcoming EPS is projected at $3.22, signifying a 90.53% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $29.46 billion, indicating a 84.69% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.73 per share and a revenue of $105.63 billion, demonstrating changes of +71.99% and +65.34%, respectively, from the preceding year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 34.1. This valuation marks a discount compared to its industry average Forward P/E of 49.67.
We can also see that AVGO currently has a PEG ratio of 0.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AVGO's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.
View the Zacks #1 Rank List
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Why Broadcom Inc. (AVGO) Dipped More Than Broader Market Today
Broadcom Inc. (AVGO - Free Report) closed at $384.05 in the latest trading session, marking a -3.98% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 1.55%.
Heading into today, shares of the chipmaker had gained 4.68% over the past month, outpacing the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's upcoming EPS is projected at $3.22, signifying a 90.53% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $29.46 billion, indicating a 84.69% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.73 per share and a revenue of $105.63 billion, demonstrating changes of +71.99% and +65.34%, respectively, from the preceding year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 34.1. This valuation marks a discount compared to its industry average Forward P/E of 49.67.
We can also see that AVGO currently has a PEG ratio of 0.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AVGO's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.