Broadcom Inc. (AVGO) closed the most recent trading day at $240.91, moving +0.25% from the previous trading session. This change lagged the S&P 500's 0.61% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.28%.
The chipmaker's stock has climbed by 0.26% in the past month, falling short of the Computer and Technology sector's gain of 1.24% and the S&P 500's gain of 2.08%.
The investment community will be paying close attention to the earnings performance of Broadcom Inc. in its upcoming release. The company is expected to report EPS of $1.50, up 36.36% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $14.62 billion, indicating a 22.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.30 per share and a revenue of $61 billion, demonstrating changes of +29.36% and +18.28%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Broadcom Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. Right now, Broadcom Inc. possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Broadcom Inc. is currently being traded at a Forward P/E ratio of 38.13. This signifies a premium in comparison to the average Forward P/E of 26.23 for its industry.
We can additionally observe that AVGO currently boasts a PEG ratio of 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.25.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 143, this industry ranks in the bottom 44% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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