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Broadcom Inc. (AVGO) Rises Higher Than Market: Key Facts

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Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $1,412.45, demonstrating a +0.33% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.59%.

Shares of the chipmaker have appreciated by 5.17% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.87% and outperforming the S&P 500's gain of 4.19%.

Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company plans to announce its earnings on June 12, 2024. It is anticipated that the company will report an EPS of $10.79, marking a 4.55% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $12.04 billion, up 37.88% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $47.07 per share and a revenue of $50.54 billion, indicating changes of +11.41% and +41.09%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. Broadcom Inc. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Broadcom Inc. is holding a Forward P/E ratio of 29.91. Its industry sports an average Forward P/E of 37.54, so one might conclude that Broadcom Inc. is trading at a discount comparatively.

Investors should also note that AVGO has a PEG ratio of 2.15 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.82.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 22% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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