Broadcom Inc. (AVGO) Stock Moves -0.21%: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO) closed at $557.80, marking a -0.21% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.35%.
Prior to today's trading, shares of the chipmaker had gained 13.53% over the past month. This has outpaced the Computer and Technology sector's gain of 8.33% and the S&P 500's gain of 7.11% in that time.
AVGO will be looking to display strength as it nears its next earnings release. In that report, analysts expect AVGO to post earnings of $7.75 per share. This would mark year-over-year growth of 22.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.35 billion, up 13.7% from the year-ago period.
Any recent changes to analyst estimates for AVGO should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO is currently a Zacks Rank #3 (Hold).
Digging into valuation, AVGO currently has a Forward P/E ratio of 18.03. For comparison, its industry has an average Forward P/E of 25.75, which means AVGO is trading at a discount to the group.
Meanwhile, AVGO's PEG ratio is currently 1.2. 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 1.52 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 49, which puts it in the top 20% 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.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.
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