In the latest close session, Broadcom Inc. (AVGO) was up +1.28% at $298.01. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.44%.
Shares of the chipmaker have depreciated by 0.02% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.65%, and the S&P 500's gain of 0.87%.
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 predicted to post an EPS of $1.66, indicating a 33.87% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.82 billion, up 21.04% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.63 per share and a revenue of $62.7 billion, representing changes of +36.14% and +21.57%, respectively, from the prior year.
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 business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Broadcom Inc. is presently trading at a Forward P/E ratio of 44.36. This signifies a premium in comparison to the average Forward P/E of 28.96 for its industry.
One should further note that AVGO currently holds a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 1.82.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 18% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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