AVGO - Broadcom Inc.
| Previous Close | 255.33 |
| Open | 259.13 |
| Bid | 260.31 x 800 |
| Ask | 261.00 x 900 |
| Day's Range | 257.00 - 261.94 |
| 52 Week Range | 197.46 - 273.85 |
| Volume | 3,463,448 |
| Avg. Volume | 3,875,819 |
| Market Cap | 106.224B |
| Beta (3Y Monthly) | 0.58 |
| PE Ratio (TTM) | 9.17 |
| EPS (TTM) | 28.44 |
| Earnings Date | Dec 3, 2018 - Dec 13, 2018 |
| Forward Dividend & Yield | 10.60 (4.15%) |
| Ex-Dividend Date | 2018-12-18 |
| 1y Target Est | 291.41 |
- Markit•yesterday
See what the IHS Markit Score report has to say about Broadcom Inc.
# Broadcom Inc ### NASDAQ/NGS:AVGO View full report here! ## Summary * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Positive Short interest is extremely low for AVGO with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting AVGO. ## Money flow ETF/Index ownership | Negative ETF activity is negative and may be weakening. The net inflows of $3.54 billion over the last one-month into ETFs that hold AVGO are among the lowest of the last year and appear to be slowing. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to score@ihsmarkit.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- GuruFocus.com•3 days ago
Broadcom Inc (AVGO) President and CEO Hock E Tan Sold $5.1 million of Shares
President and CEO of Broadcom Inc (NASDAQ:AVGO) Hock E Tan sold 20,000 shares of AVGO on 01/15/2019 at an average price of $254.99 a share.
- Zacks•3 days ago
TXN and AVGO: A Tale of Two Dividend-Paying Semiconductor Stocks
Ryan McQueeney discusses the end of the semiconductor super cycle and compares Texas Instruments and Broadcom, two chip stocks that dividend investors might have on their radars right now.
- CNBC•3 days ago
These stocks could surge the most if the US lowers tariffs on China and makes a trade deal
U.S. stocks with revenue exposure to China including Skyworks Solutions, Broadcom, Micron Technology and Marvell Technology Group can be big winners if a trade deal comes through, according to HSBC.
- Investopedia•3 days ago
7 Stocks To Own For A US-China Trade Deal
Stock investors seeking to position themselves for a possible trade deal between the U.S. and China may consider looking at tariff-sensitive stocks. According to a recent HSBC report, seven stocks stand out as poised to jump sharply if a trade deal passes, including Nvidia Corp. (NVDA), Skyworks Solutions Inc. (SWKS), Broadcom Inc. (AVGO), Micron Technology Inc. (MU), Marvell Technology Group Ltd. (MRVL), Intel Corp. (INTC) and Apple Inc. (AAPL), all of which generate more than 20% of their total sales from China, per a detailed story in CNBC. Other investors say tariff-sensitive industrial, energy and agricultural stocks could jump, too.
- Market Realist•3 days ago
TSMC’s Q1 Guidance Anticipates Its Steepest Revenue Fall in Years
TSMC's Q1 Guidance Anticipates Its Steepest Revenue Fall in YearsTSMC’s unexpected earnings guidance The semiconductor earnings season began with an unpleasant surprise. On January 17, TSMC (TSM), the world’s largest foundry and the sole
- Markit•3 days ago
See what the IHS Markit Score report has to say about Broadcom Inc.
# Broadcom Inc ### NASDAQ/NGS:AVGO View full report here! ## Summary * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Positive Short interest is extremely low for AVGO with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting AVGO. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $6.36 billion over the last one-month into ETFs that hold AVGO are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to score@ihsmarkit.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- Zacks•4 days ago
Broadcom Inc. (AVGO) Stock Sinks As Market Gains: What You Should Know
Broadcom Inc. (AVGO) closed at $251.70 in the latest trading session, marking a -1.87% move from the prior day.
- ETF Trends•4 days ago
Look to Semiconductor ETFs Once U.S., China Reach a Deal
As the U.S. and China continue talks, investors may look to the pommeled semiconductor-sector ETFs if the negotiations pull through. BlackRock Chairman and CEO Larry Fink told CNBC on Wednesday there would ...
- CNBC•4 days ago
These stocks could surge the most if and when US and China reach a trade deal
U.S. stocks with revenue exposure to China including Skyworks Solutions, Broadcom, Micron Technology and Marvell Technology Group can be big winners if a trade deal comes through, according to HSBC.
- InvestorPlace•4 days ago
The 5 Best Mutual Funds to Invest In the Semiconductor Space
Semiconductor stocks, often viewed as a bellwether segment in the technology sector, are coming off a rough year. In 2018, the PHLX SOX Semiconductor Sector Index, one of the most widely followed gauges of chip stocks, slipped 6.50%. That drop was nearly 200 basis points worse than the S&P 500's. While semiconductor stocks and mutual funds are rebounding to start 2019, some analysts are less than enthusiastic about the group. Morgan Stanley recently lowered its outlook on the semiconductor group, citing deteriorating conditions. Several of the industry's marquee names have also warned about slack demand over the coming quarters. Still, there are some compelling long-term data points to consider when evaluating semiconductor stocks and mutual funds to invest in. InvestorPlace - Stock Market News, Stock Advice & Trading Tips "The worldwide semiconductor memory market is anticipated to develop at quick pace over the estimate time frame attributable to growing popularity for smartphones and introduction of technologically innovative smart devices," according to Acumen Research and Consulting. "Rapidly increasing mobile computing and rising penetration of Solid-State Drives (SSD) is likewise foreseen to drive the growth of worldwide semiconductor memory market over the forecast time period." * 10 Growth Stocks With the Future Written All Over Them Here are the five best mutual funds for contrarian investors to invest in the semiconductor space. ### Fidelity Select Semiconductors Portfolio (FSELX) Expense Ratio: 0.75%, or $75 annually per $10,000 invested Compared to some of the exchange-traded funds (ETFs) in the semiconductor universe, the Fidelity Select Semiconductors Portfolio (MUTF:FSELX) is pricey with an annual fee of 0.75%, but investors can realize some cost savings with one of the best mutual funds for semiconductor exposure because Fidelity clients can transact in FSELX free of commissions. Adding to the case for FSELX as one of the best mutual funds for semiconductor exposure is the fund's long-term track record. This Fidelity fund has a lengthy history of outperforming the S&P 500, broader technology benchmarks and some well-known semiconductor indexes. FSELX is a top-heavy fund as its top 10 holdings combine for almost 70% of the fund's weight. That group includes Broadcom (NASDAQ:AVGO), Applied Materials (NASDAQ:AMAT) and Nvidia (NASDAQ:NVDA). ### Fidelity Advisor Semiconductors Fund - Class A (FELAX) Expense Ratio: 1.15% The Fidelity Advisor Semiconductors Fund - Class A (MUTF:FELAX) is one of the best mutual funds for investors looking for actively managed exposure to chip stocks. FELAX's primary manager is Steve Barwikowski, who has more than 10 years managing this fund. * Top 10 Global Stock Ideas for 2019 From RBC Capital FELAX has a four-star Morningstar rating and its top 10 holdings represented nearly 71% of the portfolio at the end of last year. As is to be expected, there is some holding overlap between FELAX and the aforementioned FSELX. Not surprisingly, most of FELAX's holdings are classified as growth stocks, primarily large- and mid-cap growth names. ### iShares PHLX Semiconductor ETF (SOXX) Expense Ratio: 0.47% The iShares PHLX Semiconductor ETF (NASDAQ:SOXX) is not a mutual fund. It is an ETF, but ETFs are descendants of mutual funds, so a case can be made that SOXX is one of the best mutual funds for those looking for semiconductor funds to invest in. One of the factors making SOXX one of the best mutual funds for chip stocks is cost efficiency relative to the category average. SOXX tracks the aforementioned PHLX SOX Semiconductor Sector Index and holds 30 stocks. Most semiconductor funds, including the best mutual funds, are concentrated in terms of roster size. As a cap-weighted fund, SOXX is also concentrated in terms of how many stocks really drive the fund's outcomes. Broadcom, Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) combine for nearly a quarter of the fund's weight. With a three-year standard deviation of 19.55%, SOXX reflects the volatile nature of the semiconductor space and other semiconductor funds, but its price-to-earnings ratio of just over 15 implies some attractive valuations for an industry that usually trades at a premium to the broader market. ### ProFunds Semiconductor UltraSector Investor Class (SMPIX) Expense Ratio: 1.46% The ProFunds Semiconductor UltraSector Investor Class (MUTF:SMPIX) is one of the best mutual funds for traders looking for some added juice on the semiconductor trade. SMIPX is designed to deliver 1.5 times the daily returns of the Dow Jones U.S. Semiconductor Index. That means that if that index rises 1% on a particular day, SMPIX should add 1.5%. Leveraged funds, be they mutual funds or ETFs, are particularly useful for active, risk-tolerant traders when there are looming catalysts. Earnings season could do the trick for SMPIX. * 7 Stocks to Buy as the Dollar Weakens From Jan. 22 to Feb. 18, about 72% of the PHLX Semiconductor Index's components report earnings, making SMPIX one of the best mutual funds to consider during that three-week span. ### SPDR S&P Semiconductor ETF (XSD) Expense Ratio: 0.35% There are a limited number of dedicated semiconductor funds, so as was noted earlier, some of the best mutual funds in this space are actually ETFs. The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) follows the S&P Semiconductor Select Industry Index, which is an equal-weight benchmark. That eliminates some of the concentration risk associated with cap-weighted semiconductor funds. None of XSD's 35 holdings account for more than 3.48% of the fund's weight. Many equal-weight funds are driven by exposure to smaller stocks, but XSD is a large-cap fund as highlighted by a weighted average market capitalization of $25.76 billion for its components. Following a sour performance in 2018, XSD is off to a strong start this year with a year-to-date gain of almost 4%. As of this writing, Todd Shriber did not own a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post The 5 Best Mutual Funds to Invest In the Semiconductor Space appeared first on InvestorPlace.
- Zacks•4 days ago
China's U.S. FDI on the Decline Amid Strained Relationship
China's U.S. FDI sees a decline of 84% year over year to $4.8 billion in 2018 - the lowest since 2011.
- Investor's Business Daily•4 days ago
Dow Jones Futures: These 5 Top Stocks Are Just Below Buy Points
Stock futures: The market rally got more good news Tuesday as the Nasdaq cleared its 50-day line as part of its own follow-through day. Veeva Systems, Broadcom, Vertex Pharmaceuticals, Dollar General and Fabrinet are just below buy points after briefly clearing them.
- Markit•5 days ago
See what the IHS Markit Score report has to say about Broadcom Inc.
# Broadcom Inc ### NASDAQ/NGS:AVGO View full report here! ## Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Positive Short interest is low for AVGO with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $10.87 billion over the last one-month into ETFs that hold AVGO are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to score@ihsmarkit.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- InvestorPlace•5 days ago
3 Big Stock Charts for Tuesday: Broadcom, Facebook and Merck
Investors started the new trading week in the same lethargic mood they left the old one … not bearish so much as disinterested until they have more clarity. The S&P 500's close of 2,858.61 was 0.53% lower than Friday's close, leaving the market as much within reach of a renewed rally as it is on the verge of a correction. Total volume behind the pullback relatively light. Utility company PG&E (NYSE:PCG) led the way, losing a stunning 52% of its value after the organization announced it would be filing for chapter 11 bankruptcy. The company, which faces an enormous liability for its role in California's recent wildfires, recognizes it won't be able to handle that burden otherwise. Beyond that, however, the picture wasn't quite so grim. Citigroup (NYSE:C) jumped nearly 4% in response to a so-so fourth quarter report, while Goldcorp (NYSE:GG) gained more than 7% on Monday. The mega-bank anticipates impressive revenue growth this year, while the gold miner is to be bought by rival Newmont Mining (NYSE:NEM). Newmont shares subsequently fell nearly 9%, as the deal will be a dilutive all-stock deal that arguably overvalues Goldcorp at $10 billion. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The best prospects for today's action, however, are names that are much less volatile. The stock charts of Facebook (NASDAQ:FB), Merck (NYSE:MRK) and Broadcom (NASDAQ:AVGO) have been quietly moving into grooves that have largely been overlooked, leaving each on the cusp of trade-worthy moves. ### Broadcom (AVGO) Back on Dec. 28, we pointed out Broadcom shares were in rally mode, and testing a key technical ceiling. That ceiling was closer to being tested the next two. That look is marked in the daily chart with a yellow arrow. Three days later, AVGO shares were in a freefall, calling the whole idea into question. * 10 A-Rated Stocks the Smart Money Is Piling Into The stock is back in rally mode though, and the next test of that very same technical ceiling is even better founded effort than the previous one was. The bulls are getting closer to that breakout move. Click to Enlarge • The technical ceiling in question is the upper boundary of a narrowing trading range, plotted with dashed lines on both stock charts. We've now logged weeks of higher lows. • Though shares of Broadcom were hammered on Jan. 3, all the key moving average lines have stepped up as support levels. Better yet, the purple 50-day moving average line just crossed above the white 200-day moving average line … a so-called "Golden Cross." • The upper boundary of the narrowing trading range is at $259. ### Facebook (FB) A little over a month ago, Facebook was in trouble. Between the threat of regulation and the reality of a customer revolt, the sellers inadvertently framed a falling trading ranges that chopped the value of the stock by more than a third. Shares broke out of that downtrend in December, though, and while it took an even lower low and then another bullish effort to finalize the bottom, that's happened too. Now there's just one more hurdle to clear if FB stock is going to start moving higher again. Click to Enlarge • The ceiling in question is around $146, where shares peaked in December, and so far have peaked this month. Monday's test of that ceiling was the strongest test yet. • In the meantime, the purple 50-day moving average line has been hurdled after it was a technical ceiling a month ago. • On the weekly chart of Facebook we're already in the shadow of a bullish MACD crossover … the first time it has been bullish since the middle of last year. ### Merck (MRK) Finally, had rival Pfizer (NYSE:PFE) and other pharma names not further defined similar moves, the pattern Merck has left behind of late wouldn't be remarkable. Given the clues at hand, however, investors can't afford to ignore the brewing risk. Merck and its peers have been unusually bullish since early last year, and that leaves them especially vulnerable right now. One more misstep could pull the rug out from underneath the group, and from MRK in particular. Click to Enlarge • When it was tested in October, the gray 100-day moving average line held up as a floor, sparking a move to higher highs. Ditto for the December test. Monday's test so far has been successful as well, but the repeated test of that floor can't be ignored. The bears continue to swing, and sooner than later will break that floor. • There is something different going on right now, however, that we've not seen in a while. That's strong selling volume. Two of the past three days have been high-volume selloffs, suggesting there are sellers waiting in the wings. • On the weekly chart, we've already logged a bearish MACD cross that technically killed last year's incredible uptrend. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post 3 Big Stock Charts for Tuesday: Broadcom, Facebook and Merck appeared first on InvestorPlace.
- Market Realist•6 days ago
What Dialog’s Revised Q4 2018 Guidance Says about Apple Suppliers
What Dialog's Revised Q4 2018 Guidance Says about Apple Suppliers ## Dialog Semiconductor lowers its fourth-quarter revenue guidance Apple (AAPL) stock has declined 35.8% in the last 100 days after reaching its all-time high of $233.47 in early October. It’s currently trading just above its new 52-week low of $142. The stock fell as Apple is set to report its first YoY (year-over-year) decline in iPhone sale in the December 2018 quarter, which CEO Tim Cook confirmed in his January 2 letter to investors. The letter sent stocks of major Apple suppliers like Qorvo (QRVO), Broadcom (AVGO), and Skyworks (SWKS) down more than 8% on January 3. While weak iPhone sales affected Apple’s suppliers significantly, its United Kingdom–based power management chip supplier Dialog Semiconductor seems to have mitigated the impact. Today, Dialog lowered its revenue guidance for the fourth quarter of 2018 from the previous range of $430 million–$470 million to $431 million. Despite the lower guidance, Dialog’s stock is trending up as its revised guidance is better than Apple’s. Apple reduced its revenue estimate for the December 2018 quarter to $84 billion, way below its previous guided range of $89 billion–$93 billion. ## Why is Apple important for Dialog? Apple is the biggest customer of Dialog, which earns 75% of its revenue from the iPhone maker. Dialog’s revised revenue guidance suggests that weakness in iPhone sales may not have as severe an impact on Apple suppliers as Wall Street analysts suggested. Chips suppliers like Qorvo and Skyworks that have high exposure to Apple have recovered from the January 3 decline. Check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!
- Investor's Business Daily•6 days ago
Stocks Try To Recover, As This Top Growth Stock Surges On Earnings
The stock market sold off early Monday after disappointing economic news out of China. Lululemon stock surged higher in morning trade.
- ACCESSWIRE•6 days ago
Today's Research Reports on Trending Tickers: Cirrus Logic and Broadcom
Cirrus Logic's stock jumped 3.53% Friday, to close the day at $35.81. The stock recorded a trading volume of 724,380 shares, which was below its three months average volume of 981,174 shares. In the last year, Cirrus Logic's shares have traded in a range of 31.25 - 55.13.
- PR Newswire•6 days ago
Broadcom Inc. Appoints Diane M. Bryant to its Board of Directors
SAN JOSE, Calif. , Jan. 14, 2019 /PRNewswire/ -- Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, announced ...
- Investopedia•9 days ago
7 Superior Growth Stocks For 2019
These stocks are well-positioned to deliver outstanding revenue and earnings growth, per Goldman Sachs.
- Zacks•10 days ago
Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
Broadcom Inc. (AVGO) closed at $249.52 in the latest trading session, marking a +1.32% move from the prior day.
Bloomberg•10 days agoApple Suppliers Face China iPhone Sales Exposure
In the fiscal year ended Sept. 2018, Apple generated 63 percent of its total revenue from the sale of iPhones and 20 percent of its total revenue in Greater China. Bloomberg did a supply-chain analysis to estimate what revenue impact the Apple announcement may have had on seven iPhone component suppliers.
Bloomberg•10 days agoApple Suppliers Face China iPhone Sales Exposure
In the fiscal year ended Sept. 2018, Apple generated 63 percent of its total revenue from the sale of iPhones and 20 percent of its total revenue in Greater China. Bloomberg did a supply-chain analysis to estimate what revenue impact the Apple announcement may have had on seven iPhone component suppliers.
- InvestorPlace•10 days ago
7 Stocks at Risk of the Global Smartphone Slowdown
Over the past several years, there have been murmurs that the world was approaching peak smartphone. After all, smartphone penetration rates are around 80% for both developed and developing economies. Total mobile phone penetration rates, four decades after their introduction, are just a few points higher at 90%. Thus, the runway for growth in the smartphone market is increasingly short. In early 2019, those murmurs turned into full-blown screams. Apple (NASDAQ:AAPL) cut its guidance based on weak iPhone demand in both developed and developing economies. Fellow smartphone giant Samsung cut its guidance, too. So did essentially every smartphone supplier in the world. This is the first time we have seen such broad and widespread weakness across the entire smartphone industry. Perhaps that means the time has come. Peak smartphone is here. That isn't great news for smartphone-related stocks. There are a handful of stocks that have risen significantly on the coattails of secular growth in the smartphone market. This growth is drying up. It will remain weaker for longer considering everyone who wants a smartphone, already has one. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Virtual Assistants for the Future of Smart Homes As such, smartphone-related stocks that soared with a rising smartphone tide will struggle with a falling smartphone tide. Which stocks fall under this umbrella? Let's take a deeper look at seven stocks affected by the global smartphone slowdown. ### Apple (AAPL) Of course, this list starts with the world's premier smartphone-maker and the very company that confirmed we might be at peak smartphone -- Apple. The bad thing about Apple is that this company is more than half iPhone. Depending on the quarter, the iPhone has represented anywhere from ~50% to ~70% of revenues. Last quarter, that number was right around 60%. Thus, if the iPhone business is slowing (which it certainly is), then Apple's entire business will slow, too. The good thing is that Apple has a rapidly growing non-iPhone business that will ultimately lessen the company's dependence on iPhone growth. This non-iPhone business comprises new hardware, like the Apple Watch, and software, like the App Store. Revenues in the non-iPhone business rose nearly 20% in the otherwise troubled holiday quarter. Broadly speaking, because of its burgeoning non-iPhone businesses, Apple stock will be just fine long term, despite the fact that we may have just hit peak smartphone. Source: Shutterstock ### Broadcom (AVGO) When Apple isn't selling a ton of iPhones, that's a big deal for Broadcom (NASDAQ:AVGO). According to the company's most recent 10-K Filing, Apple represented about 25% of the company's net revenue in 2018, with presumably a majority of that revenue coming from the iPhone. Thus, if Apple's iPhone business is struggling, that means 25% of Broadcom's business is struggling, too. Because of this, AVGO stock fell just as much as AAPL stock following Apple's shocking guidance cut. But AVGO stock trades at just 10X forward earnings. That's pretty cheap. Plus, there is still the other 75% of the business. Some of that is wrapped up into smartphones. But, most of it deals with still-healthy end markets elsewhere along the semiconductor spectrum. * The 7 Best Stocks in the Entrepreneur Index Long-term, AVGO stock will be just fine. First and foremost, this is a smartphone company, so the stock will reasonably struggle in the near future as the smartphone tide falls. Source: Shutterstock ### Alphabet (GOOG) Admittedly, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is significantly less affected by the smartphone slowdown than smartphone-maker peers like Apple or Samsung. The company does have a smartphone (the Pixel), however, and the smartphone market is declining. Pixel is presumably still a very small portion of Alphabet's revenues. Between analysts and management, however, Pixel was mentioned 12 times in last quarter's conference call. YouTube and Cloud were mentioned 30 times. Thus, Pixel is a small part of the Alphabet picture. But, not small enough to be insignificant in terms of valuation or growth prospects. On the flip-side, Pixel growth may not be slowing with the global smartphone market. There is an argument out there that traditional smartphone innovation has been lagging, whereas Pixel innovation has actually excelled recently. That's why consumers are more excited for the new Pixel phone than any other Android phone in 2019. Thus, there's reason to believe that Pixel may actually be bucking the broader smartphone trend. In the big picture, GOOG stock has exposure to the smartphone market, but it shouldn't fall all that much because of a global smartphone slowdown. If it does, that is an opportunity to buy the dip. Source: Shutterstock ### Universal Display (OLED) When you talk about companies that rose to the moon with the rising smartphone trend and have since crashed with a stalling out smartphone market, OLED screen-maker Universal Display (NASDAQ:OLED) should come to mind. Smartphones are a cornerstone of the OLED revolution. In a nutshell, OLEDs are the next-generation of LED smart screens that are thinner, more flexible, and display deeper and more vibrant colors. One of the most common and obvious applications of OLEDs is the smartphone market. That is why the most recent generation of smartphones all have OLED displays. But, OLED screens are also more expensive, and smartphone-makers end up passing those costs onto customers. Customers aren't a big fan of this and are expressing so with their wallets. As iPhone prices have gone up to $1,000 and up, iPhone unit volumes have stalled out. That isn't a coincidence. * 10 Stocks You Can Set and Forget (Even In This Market) As such, to reinvigorate growth, Apple and other smartphone makers may pass on OLED screens in the future. If so, the smartphone-led OLED revolution will take a break. As it does, shares of Universal Display will likely struggle. Source: Shutterstock ### Micron (MU) When it comes to memory chipmaker Micron (NASDAQ:MU), it's all about the music. Buy the stock when the music is playing or when demand outstrips supply, and revenues, margins and profits rise. Sell Micron stock when the music isn't playing, or when supply outstrips demand, and revenues, margins and profits fall. The music hasn't been playing for the past several months. Supply has been catching up to demand. Revenue growth has stalled out. Gross margin expansion is turning into gross margin compression. Profits are peaking. Falling smartphone demand further dampens the demand outlook for Micron. The more demand falls, the lower prices go; the lower margins fall, and the more profits get cut. In the big picture, though, MU stock is already so cheap (4X forward earnings) that one could reasonably argue that weak smartphone demand is already priced in. That may be true. Further downside is hard to imagine. But this stock won't stage its big comeback until margins improve, and its equally hard to see margins improving with smartphone demand depressed. ### Lumentum (LITE) Opticals giant Lumentum (NASDAQ:LITE) has strong parallels with Universal Display. Much like Universal Display, the smartphone market has sparked a big boom and bust in Lumentum. Lumentum went boom by becoming the company which provides the technology behind the iPhone's new Face ID feature. This partnership sparked a huge rally in LITE stock from $15 in 2015, to $75 by early 2018. During that stretch, Apple also jumped to comprise 30% of Lumentum's revenue. Then, Lumentum went bust as the smartphone market stalled out in 2018. Since peaking in early 2018, LITE stock has fallen 40% to $45. Considering this company has ample exposure to the smartphone market, this huge sell-off makes sense. * 8 Streaming Services That Won (and Lost) the 2019 Golden Globes But, all the negatives seem priced in now. The stock trades at just 10X forward earnings and is still behind market-leading Face ID technology which should see greater proliferation over the next several years. Thus, while weakness is here to stay in the near term, the medium-to-long-term outlook for LITE stock is fairly positive. Source: Jeff Nelson Follow via Flickr ### Skyworks (SWKS) Following guidance cuts from Apple and Samsung, smartphone RF chipmaker Skyworks (NASDAQ:SWKS) -- which has historically counted both Apple and Samsung as 10%-plus customers -- cut its guide, too. That's no surprise, and SWKS stock had already fallen a bunch into the report. As such, because the bad news was already priced in, the guidance cut actually results in a rally for SWKS stock. Despite Skyworks' huge exposure to the smartphone market (47% of Skyworks revenue came from Apple last year), SWKS stock does appear to have bottomed. The stock trades at under 10X forward earnings, a low valuation even for this list of depressed smartphone suppliers. The sales multiple is also at just 3X trailing sales. That is the lowest valuation since early 2016, around the same time the stock staged a huge bounce back from a massive 2015 selloff. All in all, while Skyworks is a stock that is hugely affected by a smartphone slowdown, it appears this negative impact is already fully priced in. Any good news on the smartphone front could consequently result in a huge rally. As of this writing, Luke Lango was long AAPL, GOOG and SWKS. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 7 Stocks at Risk of the Global Smartphone Slowdown appeared first on InvestorPlace.
- Zacks•10 days ago
The Zacks Analyst Blog Highlights: Amgen, Broadcom, Starbucks, Citigroup and Carnival
The Zacks Analyst Blog Highlights: Amgen, Broadcom, Starbucks, Citigroup and Carnival
