In the latest trading session, Broadcom Inc. (AVGO) closed at $290.24, marking a +0.72% move from the previous day. This move outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Heading into today, shares of the chipmaker had gained 4.84% over the past month, outpacing the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 2.66% in that time.
Wall Street will be looking for positivity from AVGO as it approaches its next earnings report date. In that report, analysts expect AVGO to post earnings of $5.37 per share. This would mark a year-over-year decline of 8.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.76 billion, up 5.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.28 per share and revenue of $22.55 billion. These totals would mark changes of +2.21% and +8.17%, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AVGO is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AVGO is holding a Forward P/E ratio of 13.54. Its industry sports an average Forward P/E of 21.21, so we one might conclude that AVGO is trading at a discount comparatively.
We can also see that AVGO currently has a PEG ratio of 1.15. 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 industry currently had an average PEG ratio of 2.23 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 96, which puts it in the top 38% of all 250+ industries.
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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