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Broadcom Inc. (AVGO) Suffers a Larger Drop Than the General Market: Key Insights
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The latest trading session saw Broadcom Inc. (AVGO - Free Report) ending at $149.26, denoting a -1.37% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Heading into today, shares of the chipmaker had lost 4.94% over the past month, lagging the Computer and Technology sector's loss of 2.41% and the S&P 500's loss of 0.26% in that time.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's upcoming EPS is projected at $1.20, signifying a 14.29% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $12.9 billion, indicating a 45.36% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.72 per share and a revenue of $51.37 billion, signifying shifts of +11.58% and +43.43%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.58% rise in the Zacks Consensus EPS estimate. At present, Broadcom Inc. boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 32.04. This indicates a discount in contrast to its industry's Forward P/E of 35.01.
It is also worth noting that AVGO currently has a PEG ratio of 2.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Electronics - Semiconductors industry stood at 2.51 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Suffers a Larger Drop Than the General Market: Key Insights
The latest trading session saw Broadcom Inc. (AVGO - Free Report) ending at $149.26, denoting a -1.37% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Heading into today, shares of the chipmaker had lost 4.94% over the past month, lagging the Computer and Technology sector's loss of 2.41% and the S&P 500's loss of 0.26% in that time.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's upcoming EPS is projected at $1.20, signifying a 14.29% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $12.9 billion, indicating a 45.36% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.72 per share and a revenue of $51.37 billion, signifying shifts of +11.58% and +43.43%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.58% rise in the Zacks Consensus EPS estimate. At present, Broadcom Inc. boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 32.04. This indicates a discount in contrast to its industry's Forward P/E of 35.01.
It is also worth noting that AVGO currently has a PEG ratio of 2.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Electronics - Semiconductors industry stood at 2.51 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.