Broadcom Inc. (AVGO) closed at $328.80 in the latest trading session, marking a -1.14% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.16%. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.18%.
Heading into today, shares of the chipmaker had lost 4.79% over the past month, lagging the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
Investors will be eagerly watching for the performance of Broadcom Inc. in its upcoming earnings disclosure. On that day, Broadcom Inc. is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 26.25%. Simultaneously, our latest consensus estimate expects the revenue to be $19.27 billion, showing a 29.21% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10 per share and revenue of $95.34 billion, indicating changes of +46.63% and +49.24%, respectively, compared to the previous 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.32% higher within the past month. Broadcom Inc. currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Broadcom Inc. is presently being traded at a Forward P/E ratio of 33.27. This indicates a discount in contrast to its industry's Forward P/E of 36.82.
It is also worth noting that AVGO currently has a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 1.97.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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