In the latest trading session, Broadcom Inc. (AVGO) closed at $309.67, marking a -1.32% move from the previous day. This change lagged the S&P 500's 1.23% loss on the day. Meanwhile, the Dow lost 1.31%, and the Nasdaq, a tech-heavy index, lost 2.29%.
Prior to today's trading, shares of the chipmaker had gained 2.22% over the past month. This has lagged the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 5.2% in that time.
AVGO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.23, up 1.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.78 billion, up 4.82% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.52 per share and revenue of $23.59 billion. These totals would mark changes of +1.08% and +4.38%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. AVGO is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 14.58. This valuation marks a discount compared to its industry's average Forward P/E of 22.45.
We can also see that AVGO currently has a PEG ratio of 1.21. 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 1.77 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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