We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $536.37, moving +0.17% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the chipmaker had gained 12.06% over the past month, outpacing the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 8.35% in that time.
Broadcom Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $9.62, up 38.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Broadcom Inc. is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 14.45. For comparison, its industry has an average Forward P/E of 15.64, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 0.99. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 31% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $536.37, moving +0.17% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the chipmaker had gained 12.06% over the past month, outpacing the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 8.35% in that time.
Broadcom Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $9.62, up 38.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Broadcom Inc. is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 14.45. For comparison, its industry has an average Forward P/E of 15.64, which means Broadcom Inc. is trading at a discount to the group.
It is also worth noting that AVGO currently has a PEG ratio of 0.99. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 31% 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.