In the latest trading session, Broadcom Inc. (AVGO) closed at $313.16, marking a -0.28% move from the previous day. This change lagged the S&P 500's 0.07% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, lost 0.29%.
Coming into today, shares of the chipmaker had gained 16.17% in the past month. In that same time, the Computer and Technology sector gained 5.79%, while the S&P 500 gained 4.3%.
AVGO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.37, down 8.21% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 5.72% from the prior-year quarter.
Any recent changes to analyst estimates for AVGO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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 currently a Zacks Rank #3 (Hold).
Digging into valuation, AVGO currently has a Forward P/E ratio of 13.56. This valuation marks a discount compared to its industry's average Forward P/E of 21.39.
We can also see that AVGO currently has a PEG ratio of 1.15. 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. The Electronics - Semiconductors was holding an average PEG ratio of 2.33 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 97, putting it in the top 39% 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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