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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $224.43, marking a +1.55% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 2.01%.
Heading into today, shares of the chipmaker had lost 10.92% over the past month, outpacing the Computer and Technology sector's loss of 11.34% and lagging the S&P 500's loss of 7.81% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be December 5, 2018. The company is expected to report EPS of $4.83, up 5.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.41 billion, up 11.62% from the prior-year quarter.
Any recent changes to analyst estimates for AVGO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. 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 10.75. This represents a discount compared to its industry's average Forward P/E of 16.93.
It is also worth noting that AVGO currently has a PEG ratio of 0.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $224.43, marking a +1.55% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 2.01%.
Heading into today, shares of the chipmaker had lost 10.92% over the past month, outpacing the Computer and Technology sector's loss of 11.34% and lagging the S&P 500's loss of 7.81% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be December 5, 2018. The company is expected to report EPS of $4.83, up 5.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.41 billion, up 11.62% from the prior-year quarter.
Any recent changes to analyst estimates for AVGO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. 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 10.75. This represents a discount compared to its industry's average Forward P/E of 16.93.
It is also worth noting that AVGO currently has a PEG ratio of 0.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.