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Broadcom Inc. (AVGO) Stock Moves -0.14%: What You Should Know

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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $254.12, marking a -0.14% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.69%. At the same time, the Dow lost 0.87%, and the tech-heavy Nasdaq lost 0.79%.

Prior to today's trading, shares of the chipmaker had lost 20.08% over the past month. This has lagged the Computer and Technology sector's loss of 7.49% and the S&P 500's loss of 4.53% in that time.

Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be June 13, 2019. On that day, AVGO is projected to report earnings of $5.17 per share, which would represent 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.

AVGO's full-year Zacks Consensus Estimates are calling for earnings of $23.11 per share and revenue of $24.40 billion. These results would represent year-over-year changes of +11% and +17.06%, respectively.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO is currently a Zacks Rank #3 (Hold).

In terms of valuation, AVGO is currently trading at a Forward P/E ratio of 11.01. Its industry sports an average Forward P/E of 17.02, so we one might conclude that AVGO is trading at a discount comparatively.

We can also see that AVGO currently has a PEG ratio of 0.91. 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 1.84 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 105, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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