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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $274.06 in the latest trading session, marking a +1.85% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the chipmaker had gained 7.84% in the past month. In that same time, the Computer and Technology sector gained 7.83%, while the S&P 500 gained 6.28%.
Investors will be hoping for strength from AVGO as it approaches its next earnings release. On that day, AVGO is projected to report earnings of $5.24 per share, which would represent year-over-year growth of 2.34%. Meanwhile, our latest consensus estimate is calling for revenue of $5.75 billion, up 7.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.84 per share and revenue of $24.49 billion, which would represent changes of +9.7% and +17.47%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of 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. 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 currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 11.78. This valuation marks a discount compared to its industry's average Forward P/E of 15.47.
Meanwhile, AVGO's PEG ratio is currently 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 industry currently had an average PEG ratio of 1.22 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 155, putting it in the bottom 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $274.06 in the latest trading session, marking a +1.85% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the chipmaker had gained 7.84% in the past month. In that same time, the Computer and Technology sector gained 7.83%, while the S&P 500 gained 6.28%.
Investors will be hoping for strength from AVGO as it approaches its next earnings release. On that day, AVGO is projected to report earnings of $5.24 per share, which would represent year-over-year growth of 2.34%. Meanwhile, our latest consensus estimate is calling for revenue of $5.75 billion, up 7.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.84 per share and revenue of $24.49 billion, which would represent changes of +9.7% and +17.47%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AVGO. These revisions help to show the ever-changing nature of 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. 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 currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 11.78. This valuation marks a discount compared to its industry's average Forward P/E of 15.47.
Meanwhile, AVGO's PEG ratio is currently 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 industry currently had an average PEG ratio of 1.22 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 155, putting it in the bottom 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.