Broadcom Inc. (AVGO) Stock Moves -0.59%: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO) closed at $470.12, marking a -0.59% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.13%.
Heading into today, shares of the chipmaker had gained 6.51% over the past month, outpacing the Computer and Technology sector's gain of 0.71% and the S&P 500's gain of 4.98% in that time.
Investors will be hoping for strength from Broadcom Inc. as it approaches its next earnings release. The company is expected to report EPS of $10.29, up 31.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.9 billion, up 20.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $37.44 per share and revenue of $33.17 billion. These totals would mark changes of +33.67% and +20.84%, respectively, from last year.
Any recent changes to analyst estimates for Broadcom Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 12.63. Its industry sports an average Forward P/E of 12.63, so we one might conclude that Broadcom Inc. is trading at a no noticeable deviation comparatively.
It is also worth noting that AVGO currently has a PEG ratio of 0.84. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
