Broadcom Inc. (AVGO) Dips More Than Broader Markets: What You Should Know

Broadcom Inc. (AVGO) closed at $587.63 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's 0.37% loss on the day.

Heading into today, shares of the chipmaker had lost 4.68% over the past month, outpacing the Computer and Technology sector's loss of 8.73% and the S&P 500's loss of 6.01% in that time.

Broadcom Inc. will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. In that report, analysts expect Broadcom Inc. to post earnings of $8.15 per share. This would mark year-over-year growth of 23.3%. Meanwhile, our latest consensus estimate is calling for revenue of $7.61 billion, up 14.28% from the prior-year quarter.

AVGO's full-year Zacks Consensus Estimates are calling for earnings of $33.03 per share and revenue of $30.63 billion. These results would represent year-over-year changes of +17.92% and +11.58%, respectively.

Investors should also note any recent changes to analyst estimates for Broadcom Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Broadcom Inc. is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Broadcom Inc.'s current valuation metrics, including its Forward P/E ratio of 17.87. This valuation marks a discount compared to its industry's average Forward P/E of 18.74.

It is also worth noting that AVGO currently has a PEG ratio of 1.23. 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 industry currently had an average PEG ratio of 1.27 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.