Broadcom Inc. (AVGO) closed the most recent trading day at $308.85, moving +0.49% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.24%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.35%.
Heading into today, shares of the chipmaker had lost 2.62% over the past month, lagging the Computer and Technology sector's gain of 6.24% and the S&P 500's gain of 7.09% in that time.
AVGO will be looking to display strength as it nears its next earnings release. On that day, AVGO is projected to report earnings of $5.23 per share, which would represent year-over-year growth of 1.36%. Our most recent consensus estimate is calling for quarterly revenue of $5.78 billion, up 4.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.52 per share and revenue of $23.59 billion, which would represent changes of +1.08% and +4.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. AVGO currently has a Zacks Rank of #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 14.28. This valuation marks a discount compared to its industry's average Forward P/E of 22.77.
We can also see that AVGO currently has a PEG ratio of 1.19. 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 currently had an average PEG ratio of 1.74 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.
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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