AVGO - Broadcom Inc.
289.95 -0.05 (-0.02%)
After hours: 7:57PM EDT
| Previous Close | 289.78 |
| Open | 291.83 |
| Bid | 288.50 x 800 |
| Ask | 289.95 x 800 |
| Day's Range | 289.53 - 293.16 |
| 52 Week Range | 202.77 - 323.20 |
| Volume | 1,814,561 |
| Avg. Volume | 3,003,725 |
| Market Cap | 115.441B |
| Beta (3Y Monthly) | 0.81 |
| PE Ratio (TTM) | 38.71 |
| EPS (TTM) | 7.49 |
| Earnings Date | Sep 4, 2019 - Sep 9, 2019 |
| Forward Dividend & Yield | 10.60 (3.66%) |
| Ex-Dividend Date | 2019-06-21 |
| 1y Target Est | 303.21 |
- Barrons.com•3 hours ago
What’s Happening at Broadcom
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- Bloomberg•7 hours ago
Mnuchin, Kudlow Invite U.S. Tech Giants to Discuss Huawei Ban
(Bloomberg) -- President Donald Trump’s senior advisers have invited U.S. technology companies to the White House on Monday to discuss a resumption of sales to blacklisted Chinese telecoms giant Huawei Technologies Co., according to people familiar with the matter.White House economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin arranged the meeting with semiconductor and software companies because they wanted to talk about how to move forward. A person familiar with the meeting said the White House asked the companies “to discuss economic matters.”Among those invited are Intel Corp. and Qualcomm Inc., according to the people. The White House did not immediately respond to a request for comment.Trump and Chinese President Xi Jinping agreed to a tentative pause in their trade war and to resume negotiations after meeting at the Group-of-20 leaders’ summit in Japan on June 29. The U.S. president at the time said he would loosen restrictions on Huawei and that China had agreed to make agricultural purchases.The White House meeting is an effort to show China that Trump is serious about allowing U.S. companies to resume business with Huawei and encourage Beijing to move forward with buying more from U.S. farmers, one of the people said.Farm GoodsChina has told the Trump administration that it would only follow through on the farm purchases once the president issues export licenses for American companies to continue shipments to Huawei. The Commerce Department is leading the process, and has said it will only grant exceptions in cases where there’s no threat to national security.U.S. companies had halted shipments after the U.S. added Huawei to a trade blacklist in May, though some have resumed certain sales after reviewing the terms of the ban.Some in the U.S. administration are arguing for America to cut off Huawei from American suppliers entirely for national security reasons, and their view is supported by China hawks on Capitol Hill.White House trade adviser Peter Navarro said earlier this month that Trump is allowing the sale to Huawei of “low grade” chips that aren’t a security risk. The administration will ensure the Chinese telecom company won’t end up dominating 5G infrastructure in the U.S., Navarro told CNN.Chipmaker FortunesHuawei is one of the world’s biggest purchasers of semiconductors. Continuing access to Chinese customers is crucial to the fortunes of chipmakers such as Intel, Qualcomm and Broadcom Inc.Some U.S.-based makers of the vital electronic components have already reported earnings and given forecasts that show the negative effects of the trade dispute. They’ve argued that their financial health is crucial to U.S. leadership of a strategically important industry.Mnuchin and U.S. Trade Representative Robert Lighthizer spoke by phone with their Chinese counterparts about trade on Thursday. Mnuchin has said if the talks progress over the phone, he and Lighthizer may travel to Beijing for in-person meetings.Trump said on Friday that the call with Chinese officials a day earlier was “very good” but that they’ll “see what happens.”The Washington Post reported earlier that U.S. technology companies planned to meet Kudlow at the White House on Monday.\--With assistance from Mark Bergen.To contact the reporters on this story: Jenny Leonard in Washington at jleonard67@bloomberg.net;Ian King in San Francisco at ianking@bloomberg.net;Todd Shields in Washington at tshields3@bloomberg.netTo contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Sarah McGregor, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Investopedia•12 hours ago
12 Tech Stocks With Revenue Shortfall Risks
These stocks are likely to endure sharp revenue declines in the next 12 months as demand weakens and the U.S.-China trade dispute drags on.
- Investor's Business Daily•2 days ago
Is Nvidia Stock A Buy Right Now? Here's What Earnings, Charts Show
Chipmaker Nvidia is at the forefront of AI and machine learning, but earnings and share prices have dived. Here is what fundamental and technical analysis say about buying Nvidia stock now.
- Market Realist•2 days ago
US-China Trade Talk Update: Things Are Still ‘Complicated’
The US-China trade deal is reportedly 90% complete. However, it’s the remaining 10% that’s turning out to be difficult.
- Market Realist•2 days ago
Fund Managers Increased Risk but Still Fear Slowdown
Despite the markets hitting record highs, not many fund managers are in an optimistic mood.
- GlobeNewswire•2 days ago
Broadcom Spearheads First Industry-Wide Multi-Vendor U.3 Plugfest
SAN JOSE, Calif., July 18, 2019 -- Broadcom Inc. (NASDAQ: AVGO) today announced its continued commitment to lead the adoption of the U.3 (SFF-TA-1001) flexible, cost-effective.
- Reuters•2 days ago
UPDATE 1-EU Commission fines Qualcomm for second time over market abuse
Qualcomm, the world's no.1 chipmaker, was fined 242 million euros ($272 million) by the European Commission on Thursday for blocking a rival from the market about a decade ago, its second EU antitrust penalty. The European Commission, the EU's competition regulator, accused Qualcomm of predatory pricing between 2009 and 2011 aimed at forcing out British phone software maker Icera, now part of Nvidia Corp. "Qualcomm's strategic behaviour prevented competition and innovation in the market," Competition Commissioner Margrethe Vestager said in a statement.
- GuruFocus.com•3 days ago
Broadcom Inc (AVGO) President and CEO Hock E Tan Sold $5.8 million of Shares
President and CEO of Broadcom Inc (30-Year Financial, Insider Trades) Hock E Tan (insider trades) sold 20,000 shares of AVGO on 07/15/2019 at an average price of $292.16 a share. Continue reading...
- Zacks•3 days ago
Broadcom Inc. (AVGO) Gains As Market Dips: What You Should Know
Broadcom Inc. (AVGO) closed the most recent trading day at $285.08, moving +0.33% from the previous trading session.
- InvestorPlace•3 days ago
Qualcomm Earnings Still Threatened by FTC Ruling
Qualcomm (NASDAQ:QCOM) stock has its share of challenges.The mobile chip maker saw a nice pop in mid-April, with shares rising from about $57 up to as high as $90 after settling its litigation with Apple (NASDAQ:AAPL). But concerns with a Federal Trade Commission (FTC) antitrust ruling have pushed the stock down to the $65-$75 price level.With government rulings threatening the company's competitive advantage, what is the next move for Qualcomm stock?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Read on to see why QCOM stock is a hold: Good News and Bad News for QCOMThe April Apple settlement boosted Qualcomm stock. After years of an ugly patent dispute, Apple settled, agreeing to pay Qualcomm between $4.5 billion and $4.7 billion and start a six-year licensing agreement.This good news helped push QCOM stock to new highs. Unfortunately, it was chased with a heavy dose of bad news.In May, Qualcomm stock tumbled after a ruling from the FTC. The FTC found that the company was engaging in unfair trade practices, exploiting its size to keep out competition and squeeze cell phone manufacturers. Qualcomm was ordered to license its technology to rival chip makers, negatively impacting the company's "edge."But Qualcomm has received a reprieve: the U.S. Department of Justice (DoJ) has asked the appeals cause to pause the antitrust ruling. The DoJ cited "Qualcomm's critical role in 5G technology in the short-term" as the rationale behind their decision.Does this mean QCOM is out of the woods? Maybe, maybe not. While the DoJ and other agencies believe Qualcomm's market power to be in the national interest, it is clear that QCOM's days of high margin licensing could be over.Without high margins, it becomes tougher to justify Qualcomm's valuation. With nonexistent growth, investors need a reason to keep bidding up QCOM shares. Qualcomm Earnings: Where is the Growth?QCOM last announced earnings on May 1st. For the quarter ending March 31, 2019, sales were down 5% year-over-year (YoY), primarily due to declines in the company's QTL licensing segment (down 8% YoY).Non-GAAP EPS for Q2 FY19 was 77 cents a share, about the same (78 cents) as in Q2 FY18.The company's aggressive share buyback program has been a factor in maintaining EPS. Qualcomm bought back $22.6 billion worth of shares in FY18, and has already bought back $1.02 billion in FY19. The company has $7.8 billion remaining under their current stock repurchase program.Qualcomm has also been able to maintain EPS via cost cutting. As discussed in the last 10-Q, QCOM successfully reduced annual operating costs by $1 billion.But to move the needle, Qualcomm needs organic growth. While the adoption of 5G is a solid future catalyst, it could be years before the new technology reaches critical mass. Qualcomm's investor communications speak little of "game-changers" in the pipeline.However, even with a lack of a growth story, Qualcomm does not trade at a discount. Let's take a look at its earnings multiples relative to peers: QCOM Stock Fairly ValuedCompared to its peers in the semiconductor space, Qualcomm's valuation seems reasonable. QCOM stock trades at 15 times forward earnings, and has a EV/EBITDA ratio of 14.9.Here are the earnings multiple metrics for Qualcomm's peers:Intel (NASDAQ:INTC): 11x forward earnings, EV/EBITDA of 7.3Texas Instruments (NASDAQ:TXN): 20.6x forward earnings, EV/EBITDA of 15.4Broadcom (NASDAQ:AVGO): 12x forward earnings, EV/EBITDA of 14.2With Qualcomm stock trading at EBITDA multiples similar to AVGO and TXN, it is hard to make a value case for QCOM. Until a solid discount to peers emerges, it is tough to find a compelling reason to enter the stock. Bottom Line: Avoid QCOM StockFor investors looking to enter Qualcomm today, the stock is not a buy. Despite the reprieve from the DoJ, Qualcomm's competitive advantage is materially impacted by the FTC decision.If the high operating margins of licensing are impacted, it becomes tougher to justify QCOM stock's current valuation. QCOM could be a buy if it starts trading at a discount to TXN and AVGO, but for the time being the stock appears fairly valued relative to its peers.On the other hand, QCOM could be attractive to dividend investors. As InvestorPlace contributor Brad Kenagy pointed out, QCOM offers a fairly high dividend yield (3.3%). Coupled with the company's buyback strategy, QCOM shareholders could see benefit even if the share price treads water.The next big move in QCOM stock will likely come from the company's earnings announcement on July 31st. Excluding the one-time item from the Apple agreement, QCOM projects quarterly non-GAAP diluted EPS to be between 70 cents and 80 cents per share, down 20-30% YoY.If QCOM exceeds expectations, shares could see a bump. But given they are not out of the woods regarding the antitrust decision, additional upside remains limited.Investors should take all of these factors into consideration before initiating a position in Qualcomm stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Qualcomm Earnings Still Threatened by FTC Ruling appeared first on InvestorPlace.
- TipRanks•3 days ago
KeyBanc: These Are The Only 2 Chip Stocks to Buy Into Earnings
Chip stocks face numerous challenges right now. Fundamentally speaking, markets continue to weaken due to the ongoing U.S./China trade war, while channel inventories remain elevated. Further headwinds arise from the US government's Huawei restrictions and weak 2H19 iPhone builds (down 15% year-over-year) aren't helping either. Luckily, top-rated KeyBanc analyst John Vinh has just released a valuable report setting out his chip expectations going into second quarter earnings. And he selects two chip stocks that still offer a compelling outlook for investors. However the analyst does caution “Huawei expectations are likely to be a source of confusion, as it remains unclear as to which suppliers have stopped or resumed shipments given different interpretations of the entity list rules.” With this warning in mind, let’s take a closer look at the two buy-rated stocks now: Broadcom Inc (AVGO)The number one chip stock for Vinh is semiconductor giant Broadcom. Vinh sees positive risk/reward for AVGO right now thanks to a slew of encouraging reasons. Most notably, the company’s current guidance excludes contributions from Huawei. As a result the analyst believes the easing of trade restrictions and possibility Broadcom has already begun shipping will allow the company to reiterate full -year guidance. At the same time, Vinh singles out M&A as a defensive mechanism in the current downturn. That’s because accretive cost synergies should limit downside risk to EPS. “While the acquisition of another software company is unlikely to result in multiple expansion, outsized earnings growth is likely to lead to stock outperformance assuming the current valuation multiple remains constant” explains the analyst on July 16. For example, the company was recently in talks to buy out cybersecurity stock Symantec (SYMC), although the deal has now reportedly stalled over price disagreements. Nonetheless, as Stacy Rasgon, an analyst with Bernstein commented: “Broadcom buys software companies, that’s their strategy. If this falls apart, they’ll buy something else at some point.” Putting this altogether, Vinh expect AVGO to post in line F3 Q19 (Jul) results and reiterate full -year guidance. (Note that Broadcom reports results off quarter, which means that its next earnings are for the fiscal third quarter.) The analyst’s current $310 price target indicates 9% upside from the stock’s $284 price target. Even though the stock has faltered in the last three months, shares still are up 12% year-to-date. That’s with an impressive 1-year change of 40%. Adding weight to his call is the fact that we can see Vinh has a strong 88% success rate return when it comes to his AVGO ratings. That’s with an average return per Broadcom rating of 31.8%. Encouragingly, the Street shares this bullish approach. The stock holds a Strong Buy analyst consensus, and a $312 average price target (10% upside potential). In fact, out of 27 analysts polled on the stock in the last three months, 21 rate the stock a buy and only 6 rate the stock a hold. Xilinx, Inc. (XLNX)Also on Vinh’s ‘buy’ list is Xilinx, a supplier of programmable logic devices. The stock has surged since June when the company revealed that its seven nanometer (nm) Versal adaptive compute acceleration program (ACAP) chips had already begun shipping to customers.“We believe current estimates are achievable given 5G rollouts exChina and the anticipated recovery in AIT (A&D, Industrial, TME). We anticipate in-line F1Q20 (June) results and in-line to higher F2Q20 (Sept.) guidance” writes Vinh. The company is set to report June quarter earnings on Wednesday, July 24th, after the market close. The analyst adds: “We believe expectations for XLNX have already been largely been derisked, when the Company previously lowered its outlook for WWG (Wired and Wireless Group) to 12.5% growth in FY20 (March).” He has a $130 price target on the stock- which is exactly in line with the Street’s average price target. Meanwhile Vinh’s track record on Xilinx works out slightly under his AVGO record- but the success rate is still an impressive 76% with a 24.4% average return per rating. Overall, the Street shows a cautiously optimistic outlook for Xilinx stock. The stock has a Moderate Buy consensus with analysts equally split between hold and buy. Right now, the most bullish analyst on the stock is Hans Mosesmann of Rosenblatt Securities. He recently ramped up his price target to $165, indicating 37% upside potential.“Even with Huawei not expected to be a major customer for Xilinx in the future, we believe management will continue to support a 5-year mid-teens sales and earnings growth profile driven by data center acceleration, 5G broad-based exposure outside of Huawei, and industrial/ automotive traction enabled by an aggressive 7nm process technology ramp” explains Mosesmann.
- Zacks•3 days ago
Symantec Ups the Ante in Cloud Security With New Solutions
Symantec's (SYMC) new security capabilities will cover SaaS application security, IaaS application security, web and Internet security, and e-mail security.
- TipRanks•3 days ago
3 High-Yield Dividends for Value Investors
Markets are high, as investors have rushed back into stocks on expectations that the Federal Reserve will cut interest rates at least once before year’s end. With bond yields already low, and lower rates in the offing, stocks are the natural place to turn. And among the stocks, high-yield dividends offer investors an additional income stream to supplement share price growth. Here we look at three stocks offering high dividend payouts. Broadcom, Inc. (AVGO)Shares in Broadcom slipped in recent sessions, when acquisition talks between the chipmaker and cyber security corporation Symantec (SYMC) broke off. Symantec ended the negotiations, saying that Broadcom’s per-share offer was too low. Both companies saw a retreat in share price; Broadcom much less.Macro factors have been more important to AVGO’s share performance than possible acquisitions. The US semiconductor industry was hit hard last month when tariff fears flared up, but that has eased since Presidents Trump and Xi met cordially at the G20 summit and announced that formal trade talks would resume.So, Broadcom is looking stable, but more attractive to investors is the company’s 3.73% dividend yield. While that percentage may not seem high, AVGO’s $284 share price makes the annualized payout $10.60. Quarterly, it pays out $2.65 per share. Even better, AVGO has a history of both consistent payouts and steady increases of the dividend. It’s a guaranteed income that nicely complements the stock’s 9% upside potential.Broadcom has gained over 13% since the beginning of June, and analysts are sanguine about the stock’s future. William Stein, of SunTrust Robinson, remains “positive on Broadcom's outstanding historical track record of value creation from its investing decisions and expects its management to continue to make intelligent capital allocation decisions.” His price target, $307, suggests an 8% upside to the stock.A look at Stein’s ratings history on Broadcom shows that he has been consistently bullish on this stock for the last year. Even better, his ratings are frequently borne out by performance – he has a 19% average return on his recommendations for AVGO shares.>>Click Here to see William Stein’s complete Analyst ProfileOverall, Broadcom holds a strong buy from the analyst consensus, based on 21 buy ratings and 6 holds assigned in the last 3 months. The stocks $311 average price target suggests room for 9.6% growth from the $284 current share price. Home Depot, Inc. (HD)Home Depot leads the big-box home improvement superstore niche, with double the market share, double the share price, and triple the market cap of its largest competitor, Lowe’s (LOW). With recent positive economic indicators, especially June’s strong jobs numbers and the prospect of a Fed interest rate cut putting downward pressure on mortgage rates, the home improvement niche is looking strong.A solid business niche leads to profit and cash flow. HD is set to release Q2 earnings on Aug 13, and the expectation is for $3.09 per share, and increase of 36% from last quarter’s $2.27 EPS. Historically, the company’s fiscal second quarter is its strongest for earnings.HD also has a history of sharing earnings with investors through a robust dividend. The yield is a modest 2.5%, but the high share price makes the annual payout $5.44. Quarterly payments are $1.36, and HD has a history of raising the dividend each year.>>Click here to see the HD Dividend CalendarThe reliable dividend and profitable business model may explain HD’s popularity among investors. TipRanks tracks over 50,000 individual portfolios; among the best performing of these, Home Depot shares appear in 16.3%, or 1 out of 6. Top performing investors have increased their HD holdings by more than 2% over the past month, reflecting the overall “very positive” investor sentiment on the stock.>>Click Here to see HD Investor SentimentInvestors and dividend fans aren’t the only ones bullish on Home Depot. Goldman Sachs analyst Kate McShane reviewed the stock earlier this month and gave it a $235 price target, implying an upside potential over 8%. In her comments, McShane wrote: “Home Depot hits all the marks when it comes to gaining market share and increasing operating dollar growth. Expect these two attributes to drive upside to the stock over the next 12 months.”Home Depot’s price target presents us with the interesting case of a solid stock whose recent gains have pushed its share price above recent analyst expectations. HD is trading at $217; the average price target, however, is only $209, and still reflects older analyst ratings. As McShane’s comments and target show, Wall Street is beginning to readjust its outlook on the company. HD remains a strong buy, based on an analyst consensus of 8 buys and 5 holds in the past three months. Philip Morris International, Inc. (PM)Yes, this is a cigarette company, a classic “sin stock.” But investors are in the market to make a profit, and that’s where Philip Morris delivers. Year-to-date, shares in PM are up 22%. The profits come while cigarette sales are slowing, as the tobacco companies have been casting about for other business opportunities, making investments in cannabis, alcohol, and e-cigarettes.In looking for alternate revenue streams, Big Tobacco hasn’t forgotten the investor. PM pays out a regular dividend of $1.14 quarterly. Annualized, this represents an income of $4.56 per share and a yield of 5.59%. More important, is PM’s 11-year history of growing the dividend, making this stock particularly attractive to value investors.>>Click Here to see the PM Dividend CalendarSecular trends – especially the poor reputation of tobacco and smoking products – may be lined up against the tobacco companies, but some Wall Street analysts see this as a buying opportunity. Writing from Goldman Sachs, Judy Hong says, “Tobacco valuations are "at a 10-year trough despite a more accommodating market backdrop.”She sees a floor to cigarettes’ unpopularity, and a stabilization in sales and profits. Continuing, she says, “Expect the current discount on tobacco stocks to narrow as cigarette fundamentals hold up better than feared, contribution from next generation tobacco products builds, and regulatory concerns subside over time.”Hong says that the bearishness on tobacco traces back to lower sales volumes for cigarettes along with up-front costs of the shift to e-cigs and other alternative products. However, she adds, “Expect the decline in cigarette consumption to abate and the shift to e-cigarettes to moderate. And international cigarette volume trends have been mostly stable.” In line with her bullish stance on the industry, Hong gives PM a solid buy rating.Bonnie Herzog, of Wells Fargo, agrees with Hong on the outlook for Philip Morris. She bases her optimism, however, on a successful move toward alternative tobacco products, specifically the iQOS heat-not-burn option. Writing of PM, she says she expects the company to beat the Q2 earnings estimate, saying, “We expect PM will beat conservative EPS of $1.32 (vs our $1.36) and we expect: (1) sequential acceleration of iQOS shipment volume in Japan (+14.5%) given strength from next generation iQOS 3/Multi platforms; (2) iQOS to lead heat-not-burn (HNB) category growth in Japan and gain market share elsewhere; and (3) strong cigarette price realization.”Herzog gives PM a price target of $100, suggesting an upside potential of 22% to the stock. Her rating suggests that PM has more room for growth than the conventional wisdom would indicate – PM’s average price target is $93, indicating a possible upside of 15% from the share price of $81.PM’s analyst consensus rating is a moderate buy, derived from 7 buys and 3 holds in the last three months.TipRanks puts a wide variety of data analysis tools at your fingertips, so you can find the right investment for your portfolio. Get started today, with our Stock Screener.
- American City Business Journals•4 days ago
Analysts say Symantec should accept Broadcom's buyout offer instead of being 'stubborn'
Analysts expressed surprise and disappointment that Broadcom’s attempted acquisition of Symantec fell through over a difference of less than $1 per share.
- Market Realist•4 days ago
Symantec and Broadcom Have Ended Deal Talks—What Now?
Symantec (SYMC) stock plunged as much as 15% on Monday after the company halted deal negotiations with semiconductor giant Broadcom (AVGO).
- Market Realist•4 days ago
Trade with Huawei: US Chip Firms Get Some Good News
The US Commerce Department is accelerating the implementation of policy change in regards to trade with Huawei.
- Zacks•4 days ago
Company News for Jul 16, 2019
Companies In The News Are: SYMC,AVGO,GLPG,GILD,BA,AAL,UNIT
- Zacks•4 days ago
Broadcom Reportedly Gives Up on Symantec Buyout: Key Insights
Broadcom (AVGO) is reportedly giving up on Symantec acquisition. The company is likely to focus on Tibco buyout.
- InvestorPlace•4 days ago
3 Big Stock Charts for Tuesday: Ford, International Paper and LyondellBasell
Although down for the better part of the day, stocks managed to fight their way back into the black on Monday. The S&P 500's 0.02% rise is anything but impressive, but it gives the bulls another day to build their technical and psychological support.Source: Shutterstock Symantec (NASDAQ:SYMC) held the rally back more than any other name, falling more than 10% after Broadcom (NASDAQ:AVGO) announced it was throwing in the towel in its acquisition effort. Teva Pharmaceutical (NYSE:TEVA) was problematic too, however, falling nearly 8% after Morgan Stanley downgraded the stock. Analyst David Risinger is worried about underestimated competition and litigation risks related to its opioid business.At the other end of the spectrum, Tesla (NASDAQ:TSLA) jumped more than 3% for a bevy of reasons, including winning two different "car of the year" awards.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Monthly Dividend Stocks to Buy to Pay the Bills As Tuesday's action gets going, however, it's the stock charts of Ford (NYSE:F), International Paper (NYSE:IP) and LyondellBasell Industries (NYSE:LYB) that merit the most attention. Here's why. International Paper (IP)The last time we looked at International Paper back in mid May, it was trapped in a downtrend largely guided by resistance at the 200-day moving average line, plotted in white on both stock charts. A near-term technical floor was holding it, but the sellers were persistently chipping away.They ultimately won the fight, dragging shares below that support area. The stock tried to bounce back, as it has since early 2018. As has also been the case since then, however, IP once again lost a fight when another ceiling stepped up to the plate. Things are apt to get worse before they get better. Click to Enlarge * The newest technical ceiling is the 50-day moving average line, plotted in purple. Rebound efforts repelled there in early June and again in early July. * This month's weakness has also been on above-average selling volume, suggesting there are more bears waiting in the wings. * The next major technical floor is around $39.50, marked in red. International Paper shares have found a floor there a few times since the beginning of 2016, and late last year in particular. LyondellBasell Industries (LYB)Two weeks ago, LyondellBasell Industries shares appeared to be on the mend. They had snapped back from a rough May, crawling back above the purple 50-day moving average line and then the gray 100-day average line, and then started to find support at that moving average. However, a push up and off the 100-day line to test the white 200-day moving average line ultimately proved disastrous. All it took was a kiss of the 200-day moving average to lead into a significant loss for that day.Before sliding back into trouble though, LYB stock found support at an established floor again, and appears to be positioning for another shot at clearing the 200-day moving average. It's less than an ideal effort though. Click to Enlarge * The support area in play now is once again the 50-day moving average line, bolstered by horizontal support around $83.60 where shares found a floor a few times in the first quarter of the year. * Although the bleeding stopped before too much damage was done, the recent setback has been on huge volume, and the two rebound days were on subpar volume. * If LyondellBasell can punch through the ceiling near $88, the next most meaningful level is around $96, marked in yellow, where LYB stock found support and resistance several times since 2017. Ford Motor Company (F)Ford has been a tough name to own for a long time. Even with the recent rebound effort, the stock remains down more than 40% from its 2014 peak price.This effort could be different though. While we've seen past recovery effort falter when bumping into an established technical ceiling, reinforcing that very ceiling, this advance is better grounded than most of the past ones have been. Click to Enlarge * The ceiling in question is the resistance line that tags all the key peaks going back to 2015, plotted in blue on the weekly chart. It has being tested again. * Since early June, F stock has found pretty persistent support at its purple 50-day moving average line. This support is highlighted on the daily chart. * Although it wouldn't readily appear this is the case on the daily chart, the weekly chart's Chaikin line -- by virtue of pointing upward again after crossing zero in April -- says there's consistent buying volume in place.As of this writing, James Brumley held a long position in Ford. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Big Stock Charts for Tuesday: Ford, International Paper and LyondellBasell appeared first on InvestorPlace.
- Markit•4 days ago
See what the IHS Markit Score report has to say about Broadcom Inc.
Broadcom Inc NASDAQ/NGS:AVGOView full report here! Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort 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 flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold AVGO had net inflows of $10.62 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is very weak relative to the trend shown over the past year, and has continued to ease. However, the rate of expansion may accelerate in the coming months. Credit worthinessCredit default swapCDS 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•4 days ago
Advanced Micro Devices Stock Could Be Set to Finally Bust Through
Advanced Micro Devices (NASDAQ:AMD) is back at the highs. The AMD stock price cleared $33 last week, something it's managed to do a few times in the past year. Each time, those levels have proven to be bad news for Advanced Micro Devices stock.Source: Shutterstock AMD stock got there for the first time last September, reaching a 12-year high at the time. It immediately dipped. After two more tries, the chip sector as a whole collapsed. The AMD stock price went from $33 to $17 in a matter of weeks.AMD stock briefly touched $34 last month. It fell promptly declined 15% over the next five sessions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's pretty clear that levels around $33-$34 have proven to be resistance for the AMD stock price. The question now, particularly with Q2 earnings on the way in two weeks or so, is whether this time will be different. * 7 Dependable Dividend Stocks to Buy The Risks to the AMD Stock PriceThere are three reasons to see current levels as potentially risky for Advanced Micro Devices stock. The first is precisely that history, particularly in the context of chip stocks more broadly. Big earnings from Micron (NASDAQ:MU) have helped boost the sector in recent weeks, admittedly.But semiconductor stocks have seen quite a bit of volatility over the past year. Micron may have touted optimism - but Broadcom (NASDAQ:AVGO) did largely the opposite. Even before those reports, this has been a space where investors are best off zigging while the market zags, buying when sentiment turns sour and selling when optimism returns. That's held for AMD as well, obviously, given the stock has doubled from December lows.As such, resistance here may be firm. And that risk is buttressed by fundamental concerns. As I wrote last month, at those June highs, AMD stock isn't cheap. It trades at over 32x next year's consensus EPS. The average Wall Street price target still sits below the current price.Analysts don't always have it right, obviously (that's been particularly true in the chip space over the past eighteen months), but 32x is a big multiple for chip stock. Investors in Nvidia (NASDAQ:NVDA) learned what happens when an investor overpays for growth in such a cyclical industry. If only on a short-term basis, investors in Advanced Micro Devices have learned the same lesson a few times.And the third risk for AMD is the earnings report on the way, likely at or around the end of this month. Expectations clearly are high. AMD has stumbled after earnings in the past - most notably with a 22% decline after the Q3 report in October. AMD needs a big quarter to keep a repeat from occurring this time around. The Case for Advanced Micro Devices StockThe simple answer to all those worries is: so what? AMD stock has climbed the "wall of worry" for years now. After all, this was a $2 stock as recently as 2016, with real fears that the company might eventually declare bankruptcy.That's obviously no longer the case. AMD's new chips have made it a formidable competitor to Nvidia and Intel (NASDAQ:INTC). Intel's repeated mistakes only increase the possibility of more market share gains, more growth, and a higher AMD stock price. And those self-inflicted wounds at AMD's key competitor, along with reports of strong PC sales, suggest Q2 numbers will be impressive.Broadly speaking, this simply is a much better business than it was, and it's a really good business on its own. The "old" Advanced Micro Devices was a second-tier provider of chips for low-priced PCs. But it's now a more diversified player in terms of both PCs and growing end markets like data centers. AMD stock might not be cheap, but it shouldn't be cheap. The Bottom Line on Advanced Micro Devices StockBoth sides can make a strong case at the moment, which makes Q2 earnings particularly important. Technically and fundamentally, AMD stock is likely to move further in whatever direction it trades after the report.Big numbers lead to higher earnings estimates and likely a series of analyst upgrades that can further goose the stock. That, in turn, pushes AMD through resistance, which usually (though not always) triggers higher prices.Anything less, however, and history suggests Advanced Micro Devices stock could have a problem. We've seen AMD move from $33+ to under $30 in a blink. Bad news, or even an outlook that doesn't quite match currently optimistic expectations, could do the same, or worse.All told, I'd expect that a month or two out, AMD stock isn't trading at $33. But which way it moves will depend largely on what kind of story Advanced Micro Devices can tell with its second-quarter report.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Advanced Micro Devices Stock Could Be Set to Finally Bust Through appeared first on InvestorPlace.
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