In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $276.32, marking a +0.47% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, added 0.78%.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be June 4, 2020. The company is expected to report EPS of $5.02, down 3.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.70 billion, up 3.33% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $21.17 per share and revenue of $23.48 billion. These results would represent year-over-year changes of -0.56% and +3.9%, respectively.
Investors should also note any recent changes to analyst estimates for AVGO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 3.46% lower. AVGO is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 12.99 right now. This represents a discount compared to its industry's average Forward P/E of 19.89.
Also, we should mention that AVGO has a PEG ratio of 1.12. 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. AVGO's industry had an average PEG ratio of 2.51 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 48, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.