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Broadcom Inc. (AVGO) Stock Falls Amid Market Uptick: What Investors Need to Know
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Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $1,700.67, demonstrating a -0.31% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%.
Coming into today, shares of the chipmaker had gained 1.61% in the past month. In that same time, the Computer and Technology sector gained 5.73%, while the S&P 500 gained 4.28%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $11.96, indicating a 13.47% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.92 billion, up 45.54% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $47.39 per share and revenue of $51.42 billion. These totals would mark changes of +12.17% and +43.55%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.11% rise in the Zacks Consensus EPS estimate. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 35.99 right now. This indicates a discount in contrast to its industry's Forward P/E of 37.64.
One should further note that AVGO currently holds a PEG ratio of 2.32. 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 was holding an average PEG ratio of 2.8 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Broadcom Inc. (AVGO) Stock Falls Amid Market Uptick: What Investors Need to Know
Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $1,700.67, demonstrating a -0.31% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%.
Coming into today, shares of the chipmaker had gained 1.61% in the past month. In that same time, the Computer and Technology sector gained 5.73%, while the S&P 500 gained 4.28%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $11.96, indicating a 13.47% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.92 billion, up 45.54% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $47.39 per share and revenue of $51.42 billion. These totals would mark changes of +12.17% and +43.55%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.11% rise in the Zacks Consensus EPS estimate. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 35.99 right now. This indicates a discount in contrast to its industry's Forward P/E of 37.64.
One should further note that AVGO currently holds a PEG ratio of 2.32. 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 was holding an average PEG ratio of 2.8 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.