In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $311.57, marking a -1.31% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.5%.
Coming into today, shares of the chipmaker had gained 4.54% in the past month. In that same time, the Computer and Technology sector gained 2.84%, while the S&P 500 gained 2.62%.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. In that report, analysts expect AVGO to post earnings of $5.17 per share. This would mark year-over-year growth of 5.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.66 billion, up 12.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.13 per share and revenue of $24.43 billion, which would represent changes of +11.1% and +17.18%, respectively, from the prior year.
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. 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 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 remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 13.65. Its industry sports an average Forward P/E of 19.53, so we one might conclude that AVGO is trading at a discount comparatively.
Investors should also note that AVGO has a PEG ratio of 1.12 right now. 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 1.71 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 213, putting it in the bottom 17% 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.