Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $235.22, moving -0.26% from the previous trading session. This change lagged the S&P 500's 2.3% gain on the day. At the same time, the Dow added 2.5%, and the tech-heavy Nasdaq gained 2.95%.
Coming into today, shares of the chipmaker had gained 6.71% in the past month. In that same time, the Computer and Technology sector lost 1.65%, while the S&P 500 gained 1.21%.
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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.41 billion, up 11.61% from the year-ago period.
Investors might also notice recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.71% lower. AVGO is currently a Zacks Rank #4 (Sell).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 10.91. This valuation marks a discount compared to its industry's average Forward P/E of 16.95.
Investors should also note that AVGO has a PEG ratio of 0.79 right now. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.41 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 87, which puts it in the top 34% 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.