In the latest trading session, Broadcom Inc. (AVGO) closed at $324, marking a +1.36% move from the previous day. This move outpaced the S&P 500's daily loss of 0.9%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Coming into today, shares of the chipmaker had gained 0.53% in the past month. In that same time, the Computer and Technology sector gained 6.54%, while the S&P 500 gained 3.3%.
Investors will be hoping for strength from AVGO as it approaches its next earnings release. In that report, analysts expect AVGO to post earnings of $5.22 per share. This would mark a year-over-year decline of 5.95%. Meanwhile, our latest consensus estimate is calling for revenue of $5.93 billion, up 2.36% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $23.14 per share and revenue of $25.02 billion. These results would represent year-over-year changes of +8.69% and +10.72%, respectively.
Investors might also notice recent changes to analyst estimates for AVGO. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. AVGO is currently a Zacks Rank #3 (Hold).
Investors should also note AVGO's current valuation metrics, including its Forward P/E ratio of 13.81. This represents a discount compared to its industry's average Forward P/E of 23.47.
Also, we should mention that AVGO has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AVGO's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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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