In the latest close session, Broadcom Inc. (AVGO) was down 1.36% at $349.33. The stock's performance was behind the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.52%.
Shares of the chipmaker witnessed a gain of 2.55% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.01%, and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company's upcoming EPS is projected at $1.87, signifying a 31.69% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $17.5 billion, indicating a 24.49% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.73 per share and revenue of $63.36 billion. These totals would mark changes of +38.19% and +22.85%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Broadcom Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% downward. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 52.64 right now. This signifies a premium in comparison to the average Forward P/E of 38.55 for its industry.
It's also important to note that AVGO currently trades at a PEG ratio of 1.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.93 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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