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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $264.87, marking a +1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.9%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.13%.
Prior to today's trading, shares of the chipmaker had gained 3.89% over the past month. This has lagged the Computer and Technology sector's gain of 17.65% and the S&P 500's gain of 14.3% in that time.
AVGO will be looking to display strength as it nears its next earnings release, which is expected to be June 4, 2020. In that report, analysts expect AVGO to post earnings of $5.02 per share. This would mark a year-over-year decline of 3.65%. Our most recent consensus estimate is calling for quarterly revenue of $5.70 billion, up 3.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.17 per share and revenue of $23.48 billion. These totals would mark changes of -0.56% and +3.9%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 3.46% lower. AVGO is currently a Zacks Rank #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 12.39. This valuation marks a discount compared to its industry's average Forward P/E of 17.88.
Meanwhile, AVGO's PEG ratio is currently 1.07. 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 2.04 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $264.87, marking a +1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.9%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.13%.
Prior to today's trading, shares of the chipmaker had gained 3.89% over the past month. This has lagged the Computer and Technology sector's gain of 17.65% and the S&P 500's gain of 14.3% in that time.
AVGO will be looking to display strength as it nears its next earnings release, which is expected to be June 4, 2020. In that report, analysts expect AVGO to post earnings of $5.02 per share. This would mark a year-over-year decline of 3.65%. Our most recent consensus estimate is calling for quarterly revenue of $5.70 billion, up 3.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.17 per share and revenue of $23.48 billion. These totals would mark changes of -0.56% and +3.9%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 3.46% lower. AVGO is currently a Zacks Rank #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 12.39. This valuation marks a discount compared to its industry's average Forward P/E of 17.88.
Meanwhile, AVGO's PEG ratio is currently 1.07. 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 2.04 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.