Broadcom Inc. (AVGO) ended the recent trading session at $292.93, demonstrating a -1.61% change from the preceding day's closing price. This change lagged the S&P 500's 0.49% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.65%.
Heading into today, shares of the chipmaker had gained 8.59% over the past month, outpacing the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 0.96%.
The upcoming earnings release of Broadcom Inc. will be of great interest to investors. The company's earnings report is expected on September 4, 2025. The company is forecasted to report an EPS of $1.66, showcasing a 33.87% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $15.82 billion, up 21.03% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.64 per share and revenue of $62.72 billion, indicating changes of +36.34% and +21.61%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Broadcom Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Broadcom Inc. is currently trading at a Forward P/E ratio of 44.87. This denotes a premium relative to the industry average Forward P/E of 27.77.
It is also worth noting that AVGO currently has a PEG ratio of 1.75. 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 1.7.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 41% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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