Broadcom Inc. (AVGO) closed at $358.98 in the latest trading session, marking a +2% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.37% for the day. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.65%.
Prior to today's trading, shares of the chipmaker had gained 4.62% outpaced the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.95%.
Analysts and investors alike will be keeping a close eye on the performance of Broadcom Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $1.87, up 31.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.5 billion, up 24.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $63.36 billion, which would represent changes of +37.99% and 0%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. Broadcom Inc. presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Broadcom Inc. is at present trading with a Forward P/E ratio of 38.86. This denotes a premium relative to the industry average Forward P/E of 38.64.
It's also important to note that AVGO currently trades at a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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