We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadcom Inc. (AVGO) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $268.25, moving -0.95% from the previous trading session. This move lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq added 1.37%.
Prior to today's trading, shares of the chipmaker had gained 6.83% over the past month. This has lagged the Computer and Technology sector's gain of 6.94% and the S&P 500's gain of 8.11% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be March 21, 2019. In that report, analysts expect AVGO to post earnings of $5.58 per share. This would mark year-over-year growth of 8.98%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 7.92% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $22.84 per share and revenue of $24.49 billion. These results would represent year-over-year changes of +9.7% and +17.47%, respectively.
It is also important to note the recent changes to analyst estimates for AVGO. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 11.86 right now. Its industry sports an average Forward P/E of 14.83, so we one might conclude that AVGO is trading at a discount comparatively.
Also, we should mention that AVGO has a PEG ratio of 0.99. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadcom Inc. (AVGO) Stock Sinks As Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $268.25, moving -0.95% from the previous trading session. This move lagged the S&P 500's daily gain of 0.86%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq added 1.37%.
Prior to today's trading, shares of the chipmaker had gained 6.83% over the past month. This has lagged the Computer and Technology sector's gain of 6.94% and the S&P 500's gain of 8.11% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be March 21, 2019. In that report, analysts expect AVGO to post earnings of $5.58 per share. This would mark year-over-year growth of 8.98%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 7.92% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $22.84 per share and revenue of $24.49 billion. These results would represent year-over-year changes of +9.7% and +17.47%, respectively.
It is also important to note the recent changes to analyst estimates for AVGO. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 11.86 right now. Its industry sports an average Forward P/E of 14.83, so we one might conclude that AVGO is trading at a discount comparatively.
Also, we should mention that AVGO has a PEG ratio of 0.99. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.