Broadcom Inc. (AVGO - Free Report) closed at $285.88 in the latest trading session, marking a +1.13% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 0.17%.
Heading into today, shares of the chipmaker had lost 11.19% over the past month, lagging the Computer and Technology sector's loss of 5.23% and the S&P 500's loss of 4.88% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be March 12, 2020. The company is expected to report EPS of $5.22, down 5.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.93 billion, up 2.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.16 per share and revenue of $25.02 billion, which would represent changes of +8.78% and +10.72%, respectively, from the prior year.
Any recent changes to analyst estimates for AVGO should also be noted by investors. 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.
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 #2 (Buy).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 12.2. This represents a discount compared to its industry's average Forward P/E of 18.66.
It is also worth noting that AVGO currently has a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 1.82 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 24, putting it in the top 10% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.