We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadcom Inc. (AVGO) Falls More Steeply Than Broader Market: What Investors Need to Know
Read MoreHide Full Article
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $370.35, moving -2.77% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.52%. Elsewhere, the Dow lost 2.19%, while the tech-heavy Nasdaq lost 1.74%.
Shares of the chipmaker witnessed a gain of 0.84% over the previous month, beating the performance of the Computer and Technology sector with its loss of 3.5%, and underperforming the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.22, marking a 90.53% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $29.47 billion, indicating a 84.74% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.74 per share and a revenue of $106.07 billion, indicating changes of +72.14% and +66.03%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Broadcom Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 32.46. This indicates a discount in contrast to its industry's Forward P/E of 37.16.
It's also important to note that AVGO currently trades at a PEG ratio of 0.63. 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 1.32.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 21% of over 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.
View the Zacks #1 Rank List
Image: Bigstock
Broadcom Inc. (AVGO) Falls More Steeply Than Broader Market: What Investors Need to Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $370.35, moving -2.77% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.52%. Elsewhere, the Dow lost 2.19%, while the tech-heavy Nasdaq lost 1.74%.
Shares of the chipmaker witnessed a gain of 0.84% over the previous month, beating the performance of the Computer and Technology sector with its loss of 3.5%, and underperforming the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.22, marking a 90.53% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $29.47 billion, indicating a 84.74% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.74 per share and a revenue of $106.07 billion, indicating changes of +72.14% and +66.03%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Broadcom Inc. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 32.46. This indicates a discount in contrast to its industry's Forward P/E of 37.16.
It's also important to note that AVGO currently trades at a PEG ratio of 0.63. 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 1.32.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 21% of over 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.