In the latest trading session, Broadcom Inc. (AVGO) closed at $287.62, marking a +0.04% move from the previous day. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the chipmaker had lost 5.36% over the past month, lagging the Computer and Technology sector's loss of 1.06% and the S&P 500's loss of 1.58% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. This is expected to be September 12, 2019. The company is expected to report EPS of $5.09, up 2.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.50 billion, up 8.69% from the year-ago period.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $21.35 per share and revenue of $22.73 billion. These results would represent year-over-year changes of +2.55% and +9.03%, respectively.
Any recent changes to analyst estimates for AVGO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 past month, the Zacks Consensus EPS estimate has moved 1.18% lower. AVGO is currently a Zacks Rank #4 (Sell).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 13.47. This valuation marks a discount compared to its industry's average Forward P/E of 19.39.
Also, we should mention that AVGO has a PEG ratio of 1.14. 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. The Electronics - Semiconductors was holding an average PEG ratio of 2.11 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, 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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