Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $249.51, moving +1.16% from the previous trading session. This change outpaced the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq lost 0.11%.
Heading into today, shares of the chipmaker had gained 13.88% over the past month, outpacing the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 0.73% in that time.
AVGO will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. In that report, analysts expect AVGO to post earnings of $5.60 per share. This would mark year-over-year growth of 22%. Our most recent consensus estimate is calling for quarterly revenue of $5.41 billion, up 11.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.56 per share and revenue of $20.82 billion. These totals would mark changes of +28.34% and +18.04%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.28% higher. AVGO currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 12. For comparison, its industry has an average Forward P/E of 17.91, which means AVGO is trading at a discount to the group.
Also, we should mention that AVGO has a PEG ratio of 0.9. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.