In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $249.52, marking a +1.32% move from the previous day. This change outpaced the S&P 500's 0.45% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.42%.
Coming into today, shares of the chipmaker had lost 3.41% in the past month. In that same time, the Computer and Technology sector lost 0.69%, while the S&P 500 lost 1.64%.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be March 21, 2019. The company is expected to report EPS of $5.24, up 2.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 8.2% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $22.82 per share and revenue of $24.49 billion. These results would represent year-over-year changes of +9.61% and +17.49%, respectively.
Investors should also note any recent changes to analyst estimates for AVGO. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AVGO currently has a Forward P/E ratio of 10.79. This represents a discount compared to its industry's average Forward P/E of 13.42.
We can also see that AVGO currently has a PEG ratio of 0.9. 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 1.05 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 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.