Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $271.95, moving -0.58% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.05%. Meanwhile, the Dow lost 1.59%, and the Nasdaq, a tech-heavy index, lost 0.54%.
AVGO will be looking to display strength as it nears 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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AVGO is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 12.92 right now. Its industry sports an average Forward P/E of 22.38, so we one might conclude that AVGO is trading at a discount comparatively.
Meanwhile, AVGO's PEG ratio is currently 1.12. 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 industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.