Broadcom Inc. (AVGO) ended the recent trading session at $312.95, demonstrating a +2.98% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.14%. Meanwhile, the Dow experienced a rise of 1.1%, and the technology-dominated Nasdaq saw an increase of 1.39%.
Shares of the chipmaker have appreciated by 10.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.15%, and the S&P 500's gain of 2%.
The investment community will be closely monitoring the performance of Broadcom Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on September 4, 2025. It is anticipated that the company will report an EPS of $1.66, marking a 33.87% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.82 billion, indicating a 21.04% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.63 per share and revenue of $62.68 billion, indicating changes of +36.14% and +21.54%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Broadcom Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Broadcom Inc. is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Broadcom Inc. is currently being traded at a Forward P/E ratio of 45.82. This denotes a premium relative to the industry average Forward P/E of 27.68.
It is also worth noting that AVGO currently has a PEG ratio of 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.77.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% 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.
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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