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Why Broadcom Inc. (AVGO) Outpaced the Stock Market Today
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The latest trading session saw Broadcom Inc. (AVGO - Free Report) ending at $161.38, denoting a +1.1% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.16%.
The chipmaker's shares have seen an increase of 6.26% over the last month, surpassing the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on September 5, 2024. 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. 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 full year, the Zacks Consensus Estimates are projecting earnings of $4.72 per share and revenue of $51.37 billion, which would represent changes of +11.58% and +43.43%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Broadcom Inc. is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 33.8. This indicates a premium in contrast to its industry's Forward P/E of 32.6.
Investors should also note that AVGO has a PEG ratio of 2.23 right now. 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 industry had an average PEG ratio of 2.38 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 46% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Broadcom Inc. (AVGO) Outpaced the Stock Market Today
The latest trading session saw Broadcom Inc. (AVGO - Free Report) ending at $161.38, denoting a +1.1% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.16%.
The chipmaker's shares have seen an increase of 6.26% over the last month, surpassing the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on September 5, 2024. 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. 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 full year, the Zacks Consensus Estimates are projecting earnings of $4.72 per share and revenue of $51.37 billion, which would represent changes of +11.58% and +43.43%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Broadcom Inc. is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 33.8. This indicates a premium in contrast to its industry's Forward P/E of 32.6.
Investors should also note that AVGO has a PEG ratio of 2.23 right now. 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 industry had an average PEG ratio of 2.38 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 46% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.