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Broadcom Inc. (AVGO) Declines More Than Market: Some Information for Investors
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Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $157.35, moving -1.97% from the previous trading session. This move lagged the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Coming into today, shares of the chipmaker had lost 7.46% in the past month. In that same time, the Computer and Technology sector lost 3.88%, while the S&P 500 gained 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Broadcom Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.20, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $12.92 billion, showing a 45.54% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.72 per share and revenue of $51.42 billion. These totals would mark changes of +11.58% and +43.55%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. As of now, Broadcom Inc. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Broadcom Inc. is currently exchanging hands at a Forward P/E ratio of 34.03. This represents a discount compared to its industry's average Forward P/E of 35.4.
We can also see that AVGO currently has a PEG ratio of 2.24. 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 2.6 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Broadcom Inc. (AVGO) Declines More Than Market: Some Information for Investors
Broadcom Inc. (AVGO - Free Report) closed the most recent trading day at $157.35, moving -1.97% from the previous trading session. This move lagged the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Coming into today, shares of the chipmaker had lost 7.46% in the past month. In that same time, the Computer and Technology sector lost 3.88%, while the S&P 500 gained 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Broadcom Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.20, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $12.92 billion, showing a 45.54% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.72 per share and revenue of $51.42 billion. These totals would mark changes of +11.58% and +43.55%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. As of now, Broadcom Inc. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Broadcom Inc. is currently exchanging hands at a Forward P/E ratio of 34.03. This represents a discount compared to its industry's average Forward P/E of 35.4.
We can also see that AVGO currently has a PEG ratio of 2.24. 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 2.6 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.