In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $230, marking a +1.01% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Prior to today's trading, shares of the chipmaker had gained 5.16% over the past month. This has outpaced the Computer and Technology sector's loss of 6.3% and the S&P 500's loss of 4.06% 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 6, 2018. In that report, analysts expect AVGO to post earnings of $5.52 per share. This would mark year-over-year growth of 20.26%. Our most recent consensus estimate is calling for quarterly revenue of $5.41 billion, up 11.61% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% lower. AVGO currently has a Zacks Rank of #4 (Sell).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 10.64. This valuation marks a discount compared to its industry's average Forward P/E of 16.58.
It is also worth noting that AVGO currently has a PEG ratio of 0.77. 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. 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 industry currently has a Zacks Industry Rank of 98, which puts it in the top 38% 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.