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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
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Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $616.70, moving -0.78% from the previous trading session. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Heading into today, shares of the chipmaker had lost 1.72% over the past month, lagging the Computer and Technology sector's gain of 9.46% and the S&P 500's gain of 6.51% in that time.
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 $10.13 per share. This would mark year-over-year growth of 11.69%. Meanwhile, our latest consensus estimate is calling for revenue of $8.71 billion, up 7.5% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $41.38 per share and revenue of $35.39 billion. These results would represent year-over-year changes of +9.94% and +6.58%, respectively.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. Broadcom Inc. is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 15.02. For comparison, its industry has an average Forward P/E of 19.56, which means Broadcom Inc. is trading at a discount to the group.
We can also see that AVGO currently has a PEG ratio of 1.14. 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 3.42 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 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $616.70, moving -0.78% from the previous trading session. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Heading into today, shares of the chipmaker had lost 1.72% over the past month, lagging the Computer and Technology sector's gain of 9.46% and the S&P 500's gain of 6.51% in that time.
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 $10.13 per share. This would mark year-over-year growth of 11.69%. Meanwhile, our latest consensus estimate is calling for revenue of $8.71 billion, up 7.5% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $41.38 per share and revenue of $35.39 billion. These results would represent year-over-year changes of +9.94% and +6.58%, respectively.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. Broadcom Inc. is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 15.02. For comparison, its industry has an average Forward P/E of 19.56, which means Broadcom Inc. is trading at a discount to the group.
We can also see that AVGO currently has a PEG ratio of 1.14. 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 3.42 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 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.