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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $484.64, moving +0.6% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the chipmaker had lost 8.54% in the past month. In that same time, the Computer and Technology sector gained 2.76%, while the S&P 500 gained 1.51%.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. In that report, analysts expect Broadcom Inc. to post earnings of $9.62 per share. This would mark year-over-year growth of 38.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 24.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.06 per share and revenue of $32.98 billion, which would represent changes of +32.31% and +20.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.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.
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.
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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Broadcom Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 13. This valuation marks a discount compared to its industry's average Forward P/E of 13.59.
We can also see that AVGO currently has a PEG ratio of 0.89. 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 1.03 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 128, putting it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $484.64, moving +0.6% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the chipmaker had lost 8.54% in the past month. In that same time, the Computer and Technology sector gained 2.76%, while the S&P 500 gained 1.51%.
Wall Street will be looking for positivity from Broadcom Inc. as it approaches its next earnings report date. In that report, analysts expect Broadcom Inc. to post earnings of $9.62 per share. This would mark year-over-year growth of 38.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 24.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $37.06 per share and revenue of $32.98 billion, which would represent changes of +32.31% and +20.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc.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.
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.
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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Broadcom Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 13. This valuation marks a discount compared to its industry's average Forward P/E of 13.59.
We can also see that AVGO currently has a PEG ratio of 0.89. 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 1.03 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 128, putting it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.