Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $317.38, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.
Prior to today's trading, shares of the chipmaker had lost 0.33% over the past month. This has lagged the Computer and Technology sector's gain of 5.2% and the S&P 500's gain of 2.1% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. The company is expected to report EPS of $5.22, down 5.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.93 billion, up 2.36% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $23.14 per share and revenue of $25.02 billion. These results would represent year-over-year changes of +8.69% and +10.72%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.43% higher. 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 13.47 right now. Its industry sports an average Forward P/E of 21.26, so we one might conclude that AVGO is trading at a discount comparatively.
Investors should also note that AVGO has a PEG ratio of 1.26 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. AVGO's industry had an average PEG ratio of 1.99 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 16, putting it in the top 7% 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.