In the latest trading session, Broadcom Inc. (AVGO) closed at $376.47, marking a -2.46% move from the previous day. This move lagged the S&P 500's daily loss of 0.99%. On the other hand, the Dow registered a loss of 0.23%, and the technology-centric Nasdaq decreased by 1.58%.
The chipmaker's stock has climbed by 15.77% in the past month, exceeding the Computer and Technology sector's gain of 7.77% and the S&P 500's gain of 3.59%.
Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. In that report, analysts expect Broadcom Inc. to post earnings of $1.87 per share. This would mark year-over-year growth of 31.69%. Simultaneously, our latest consensus estimate expects the revenue to be $17.5 billion, showing a 24.49% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.72 per share and a revenue of $63.36 billion, demonstrating changes of +37.99% and +22.85%, 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 latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Broadcom Inc. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Broadcom Inc. has a Forward P/E ratio of 57.42 right now. Its industry sports an average Forward P/E of 41.43, so one might conclude that Broadcom Inc. is trading at a premium comparatively.
It is also worth noting that AVGO currently has a PEG ratio of 1.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
