We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $228.28, moving +0.11% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.48%.
Prior to today's trading, shares of the chipmaker had lost 6.9% over the past month. This has lagged the Computer and Technology sector's loss of 6.5% and the S&P 500's loss of 4.53% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be December 5, 2018. The company is expected to report EPS of $5.60, up 22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.41 billion, up 11.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.56 per share and revenue of $21.03 billion, which would represent changes of +28.34% and +19.23%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 11.09. Its industry sports an average Forward P/E of 17.16, 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 0.83. 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 1.27 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 93, putting it in the top 36% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $228.28, moving +0.11% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.48%.
Prior to today's trading, shares of the chipmaker had lost 6.9% over the past month. This has lagged the Computer and Technology sector's loss of 6.5% and the S&P 500's loss of 4.53% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be December 5, 2018. The company is expected to report EPS of $5.60, up 22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.41 billion, up 11.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.56 per share and revenue of $21.03 billion, which would represent changes of +28.34% and +19.23%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 11.09. Its industry sports an average Forward P/E of 17.16, 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 0.83. 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 1.27 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 93, putting it in the top 36% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.