Broadcom Inc. (AVGO) ended the recent trading session at $351.96, demonstrating a -1.79% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.21%. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq decreased by 0.25%.
Shares of the chipmaker witnessed a gain of 0.47% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 4.36%.
Market participants will be closely following the financial results of Broadcom Inc. in its upcoming release. The company is forecasted to report an EPS of $1.87, showcasing a 31.69% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.5 billion, indicating a 24.49% increase compared to the same quarter of the previous year.
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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 witnessed a 0.29% decrease. Broadcom Inc. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Broadcom Inc. currently has a Forward P/E ratio of 39.57. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 39.57.
It is also worth noting that AVGO currently has a PEG ratio of 1.21. 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 1.88 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 80, positioning it in the top 33% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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