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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed at $597.62 in the latest trading session, marking a +1.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the chipmaker had lost 2.46% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.03% and lagged the S&P 500's loss of 1.42% in that time.
Broadcom Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Broadcom Inc. to post earnings of $8.72 per share. This would mark year-over-year growth of 31.72%. Meanwhile, our latest consensus estimate is calling for revenue of $7.91 billion, up 19.62% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.67 per share and revenue of $31.96 billion. These totals would mark changes of +27.35% and +16.43%, respectively, from last year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.61% higher. Broadcom Inc. is currently a Zacks Rank #2 (Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 16.44. This represents a discount compared to its industry's average Forward P/E of 17.38.
Meanwhile, AVGO's PEG ratio is currently 1.13. 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 industry currently had an average PEG ratio of 1.25 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 196, putting it in the bottom 23% 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.
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
Broadcom Inc. (AVGO - Free Report) closed at $597.62 in the latest trading session, marking a +1.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the chipmaker had lost 2.46% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.03% and lagged the S&P 500's loss of 1.42% in that time.
Broadcom Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Broadcom Inc. to post earnings of $8.72 per share. This would mark year-over-year growth of 31.72%. Meanwhile, our latest consensus estimate is calling for revenue of $7.91 billion, up 19.62% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.67 per share and revenue of $31.96 billion. These totals would mark changes of +27.35% and +16.43%, respectively, from last year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.61% higher. Broadcom Inc. is currently a Zacks Rank #2 (Buy).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 16.44. This represents a discount compared to its industry's average Forward P/E of 17.38.
Meanwhile, AVGO's PEG ratio is currently 1.13. 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 industry currently had an average PEG ratio of 1.25 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 196, putting it in the bottom 23% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.