Broadcom Inc. (AVGO - Free Report) closed at $238.99 in the latest trading session, marking a -0.52% move from the prior day. This change was narrower than the S&P 500's 0.92% loss on the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Coming into today, shares of the chipmaker had gained 4.96% in the past month. In that same time, the Computer and Technology sector lost 3.51%, while the S&P 500 lost 2.56%.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be December 6, 2018. On that day, AVGO is projected to report earnings of $5.52 per share, which would represent year-over-year growth of 20.26%. Meanwhile, our latest consensus estimate is calling for revenue of $5.41 billion, up 11.61% from the prior-year quarter.
Any recent changes to analyst estimates for AVGO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 11.19. For comparison, its industry has an average Forward P/E of 17.61, which means AVGO is trading at a discount to the group.
We can also see that AVGO currently has a PEG ratio of 0.84. 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. AVGO's industry had an average PEG ratio of 1.42 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 113, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.