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Broadcom Inc. (AVGO) Dips More Than Broader Market: What You Should Know

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Broadcom Inc. (AVGO - Free Report) closed the latest trading day at $946.69, indicating a -1.13% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Shares of the chipmaker have appreciated by 8.42% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.

Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company plans to announce its earnings on December 7, 2023. The company's upcoming EPS is projected at $10.97, signifying a 4.98% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.28 billion, up 3.92% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Right now, Broadcom Inc. possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Broadcom Inc. is at present trading with a Forward P/E ratio of 20.86. This signifies a discount in comparison to the average Forward P/E of 24.19 for its industry.

It is also worth noting that AVGO currently has a PEG ratio of 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 4.1.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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