Broadcom Inc. (AVGO) Stock Moves 0.45%: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO) closed at $565.77, marking a +0.45% move from the previous day. This move outpaced the S&P 500's daily of 0%.
Heading into today, shares of the chipmaker had gained 11.92% over the past month, outpacing the Computer and Technology sector's gain of 9.31% and the S&P 500's gain of 7.79% 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 December 9, 2021. On that day, AVGO is projected to report earnings of $7.75 per share, which would represent year-over-year growth of 22.05%. Our most recent consensus estimate is calling for quarterly revenue of $7.35 billion, up 13.7% from the year-ago period.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 remained stagnant within the past month. AVGO currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AVGO has a Forward P/E ratio of 18.16 right now. Its industry sports an average Forward P/E of 25.59, so we one might conclude that AVGO is trading at a discount comparatively.
It is also worth noting that AVGO currently has a PEG ratio of 1.22. 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 was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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