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Broadcom Inc. (AVGO) Ascends While Market Falls: Some Facts to Note
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $280.94, marking a +1.94% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.
Shares of the chipmaker witnessed a gain of 9.32% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.34%, and the S&P 500's gain of 4.97%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. On that day, Broadcom Inc. is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 33.87%. Meanwhile, the latest consensus estimate predicts the revenue to be $15.82 billion, indicating a 21.03% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.64 per share and a revenue of $62.73 billion, demonstrating changes of +36.34% and +21.62%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 witnessed a 0.01% increase. Currently, Broadcom Inc. is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Broadcom Inc. is presently trading at a Forward P/E ratio of 41.54. Its industry sports an average Forward P/E of 27.16, so one might conclude that Broadcom Inc. is trading at a premium comparatively.
We can additionally observe that AVGO currently boasts a PEG ratio of 1.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.6 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Broadcom Inc. (AVGO) Ascends While Market Falls: Some Facts to Note
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $280.94, marking a +1.94% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.
Shares of the chipmaker witnessed a gain of 9.32% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.34%, and the S&P 500's gain of 4.97%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. On that day, Broadcom Inc. is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 33.87%. Meanwhile, the latest consensus estimate predicts the revenue to be $15.82 billion, indicating a 21.03% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.64 per share and a revenue of $62.73 billion, demonstrating changes of +36.34% and +21.62%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 witnessed a 0.01% increase. Currently, Broadcom Inc. is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Broadcom Inc. is presently trading at a Forward P/E ratio of 41.54. Its industry sports an average Forward P/E of 27.16, so one might conclude that Broadcom Inc. is trading at a premium comparatively.
We can additionally observe that AVGO currently boasts a PEG ratio of 1.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Electronics - Semiconductors industry stood at 1.6 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.