In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $247.65, marking a -1.14% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.18%.
Coming into today, shares of the chipmaker had gained 17.13% in the past month. In that same time, the Computer and Technology sector gained 0.35%, while the S&P 500 gained 1.71%.
AVGO will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. On that day, AVGO is projected to report earnings of $5.60 per share, which would represent year-over-year growth of 22%. Meanwhile, our latest consensus estimate is calling for revenue of $5.41 billion, up 11.62% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $20.56 per share and revenue of $20.82 billion. These results would represent year-over-year changes of +28.34% and +18.04%, respectively.
Investors might also notice recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 3.28% higher. AVGO is currently a Zacks Rank #2 (Buy).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 12.13. Its industry sports an average Forward P/E of 18.6, so we one might conclude that AVGO is trading at a discount comparatively.
We can also see that AVGO currently has a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.