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Broadcom Inc. (AVGO) Increases Yet Falls Behind Market: What Investors Need to Know
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Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $182.31, demonstrating a +0.46% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.87%.
The chipmaker's shares have seen an increase of 8.22% over the last month, surpassing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.
Analysts and investors alike will be keeping a close eye on the performance of Broadcom Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.39, reflecting a 25.23% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $14.06 billion, reflecting a 51.29% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.82 per share and revenue of $51.58 billion, indicating changes of +13.95% and +44.01%, respectively, compared to the previous 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.48% higher. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Broadcom Inc. is presently trading at a Forward P/E ratio of 37.62. This denotes a premium relative to the industry's average Forward P/E of 35.32.
It is also worth noting that AVGO currently has a PEG ratio of 2.29. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 3.95.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Broadcom Inc. (AVGO) Increases Yet Falls Behind Market: What Investors Need to Know
Broadcom Inc. (AVGO - Free Report) ended the recent trading session at $182.31, demonstrating a +0.46% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.87%.
The chipmaker's shares have seen an increase of 8.22% over the last month, surpassing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.
Analysts and investors alike will be keeping a close eye on the performance of Broadcom Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.39, reflecting a 25.23% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $14.06 billion, reflecting a 51.29% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.82 per share and revenue of $51.58 billion, indicating changes of +13.95% and +44.01%, respectively, compared to the previous 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.48% higher. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Broadcom Inc. is presently trading at a Forward P/E ratio of 37.62. This denotes a premium relative to the industry's average Forward P/E of 35.32.
It is also worth noting that AVGO currently has a PEG ratio of 2.29. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 3.95.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.