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Broadcom Inc. (AVGO) Gains But Lags Market: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $265.72 in the latest trading session, marking a +0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.
Heading into today, shares of the chipmaker had lost 13.53% over the past month, lagging the Computer and Technology sector's loss of 8.68% and the S&P 500's loss of 4.58% 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. 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, our latest consensus estimate is calling for revenue of $5.66 billion, up 12.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.11 per share and revenue of $24.40 billion, which would represent changes of +11% and +17.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 11.5. This represents a discount compared to its industry's average Forward P/E of 17.22.
Investors should also note that AVGO has a PEG ratio of 0.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.66 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 83, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Broadcom Inc. (AVGO) Gains But Lags Market: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed at $265.72 in the latest trading session, marking a +0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.
Heading into today, shares of the chipmaker had lost 13.53% over the past month, lagging the Computer and Technology sector's loss of 8.68% and the S&P 500's loss of 4.58% 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. 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, our latest consensus estimate is calling for revenue of $5.66 billion, up 12.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.11 per share and revenue of $24.40 billion, which would represent changes of +11% and +17.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 11.5. This represents a discount compared to its industry's average Forward P/E of 17.22.
Investors should also note that AVGO has a PEG ratio of 0.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.66 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 83, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.